Made in China Now...
International Data Group, the 53-year-old tech research giant and publisher founded by the late Patrick McGovern, will be acquired by a pair of Chinese investors, the companies announced Thursday.
China Oceanwide Holdings Group Co., a privately held international conglomerate with investments in real estate, financial services and media, will become the controlling shareholder of IDG's operating businesses and several of its subsidiaries. Meanwhile, IDG Capital, an independent investment firm founded by McGovern's protege Hugo Shong, will take over IDG's existing venture investment business.
Hugo Shong, Founding General Partner of IDG Capital, which is acquiring part of the tech research and publishing conglomerate International Data Group.
Financial terms of the deal, which is expected to close in the first quarter of the year, were not disclosed, but a Reuters report in November pegged the sale price at more than $1 billion.
IDG generated 2014 revenue of $3.75 billion and has 13,200 employees, with 717 in Massachusetts, according to Boston Business Journal research. The company will remained headquartered in Boston with the executives of IDG's various subsidiaries staying on, but a new board of directors will be appointed once the deal closes.
IDG's fate has been uncertain since McGovern's death, in 2014. Founded in 1964, IDG says it launched more than 300 magazines during McGovern's lifetime, including brand names like CIO, Computerworld, PCWorld and Macworld. The company expanded into China in 1980 and operates more than 60 magazines and other outlets there.
“Pat made 130 trips to China over his career, and together with longstanding IDG executive Hugo Shong they established IDG’s media, market research and venture capital businesses in China,” Walter Boyd, Chairman of IDG, said in a statement. “We are happy to announce, and I believe Pat would be delighted to know, that China Oceanwide and IDG Capital are willing partners who will continue to invest in IDG’s business and drive growth across all three of IDG’s diverse and valuable assets – IDC, IDG Communications and the IDG Ventures portfolios.”
Shong founded IDG Capital in 1993 to focus on venture investments in China and it is now one of the most active firms in the country.