Chinese software provider Kingsoft and Internet company Tencent have jointly announced that the two parties have reached a strategic investment cooperation and Tencent has gained a 15.68% stake in Kingsoft.
Tencent acquired the 15.68% stake in Kingsoft from Qiu Bojun, founder and executive director of Kingsoft, and Zhang Xuanlong, a non-executive director of Kingsoft, for HKD892 million. At the same time, Tencent made a strategic investment in Kingsoft's Internet security subsidiary. The two parties will establish a long-term partnership to jointly provide an Internet security solution for users while implementing wider and deeper cooperation in application software and gaming sectors.
Qiu said that as the founder of Kingsoft, he devoted a lot of energy and effort in the development of the company. After a long period of consideration and investigation, he has decided to introduce a strategic partner that can coordinate with Kingsoft and help the company to gain greater value; and he believes Tencent is such a company.
Ma Huateng, chairman and chief executive officer of Tencent, said that his company is glad to form the strategic partnership with Kingsoft. The strategic cooperation represents their commitment to establish a healthy and secure Internet environment in China. Ma said Kingsoft's Internet security subsidiary has 14 years of security technology and operation experience as well as advanced anti-virus technology and talent pool. Kingsoft and Tencent's technologies and businesses are highly complementary and the cooperation will combine their advantages in security technology and network operation.