Chinese software provider Kingsoft has announced plans to acquire Shenzhen Zhaoshang Zuo'er, a Shenzhen based information security and hardware products provider, for CNY14.52 million.
This is the first time that Kingsoft has made such a large scale acquisition in the software field. Kingsoft is said to have set up a subsidiary called Kingsoft Information to be responsible for the acquisition to focus on the enterprise level market. Qiu Bojun, president of Kingsoft, says that it is likely that the company will make some more acquisitions following this transaction.
As soon as it was listed in 2007, Kingsoft made an announcement to spend its financing mainly on technology research and development. Though it was believed by most people that Kingsoft might acquire more computer game companies, as revenue from computer games has contributed a lot to the company's total income, Qiu said Kingsoft won't give up the software business now that it had been engaged in the service for 20 years.