Chinese Internet infrastructure service provider 21vianet announced that the company has reached an agreement with DYXnet to acquire the entire stake in Dermot Holdings Limited and its affiliates.
Dermot operates VPN businesses in DYXnet and it includes Diyixian.com Limited and Shenzhen Diyixian. Virtual private network services provide users online privacy and circumvention services.
Founded in 1999, DYXnet is a leading VPN service provider in Greater China. With Dermot, DYXnet Group's network currently covers over 700 cities and regions, including China's mainland, Hong Kong, Taiwan, Vietnam, and Singapore. With the acquisition, 21vianet will be able to expand its data transmission infrastructure across Greater China, provide high-performance virtual private network connection solutions, and further enhance its leading position in the Chinese comprehensive Internet infrastructure service sector.
However, the deal is still subject to certain conditions. Without sharing financial details of the transaction, 21vianet said they will realize the purchase with cash and shares, and the detailed amount will be adjusted in accordance to some performance indicators. On the completion of the deal, the executives of Dermot will retain their positions and will actively participate in the daily management of the company over the next two years. The transaction is expected to close in the third quarter of 2014.
As an Internet infrastructure service provider, 21vianet offers server and network device hosting services to customers. The company is committed to providing faster and more reliable data transmission with its extensive network and featured BroadEx smart router technology.
