Tencent (0700.HK) has reached an agreement to acquire 19.9% of SZ Domain Ltd., an online games company in China.

Under their agreement, Tencent is entitled to purchase a larger stake in SZ Domain in the coming years.

Established in 1997, SZ Domain is a multiplayer network game and leisure game developer and operator. It is also a co-operator in the China Games Center, which ranks third in China's leisure game market.