Focus Media, one of China’s leading digital media groups, this morning announced that it is selling a 62% indirect equity ownership of its Internet division, Allyes, to US-based private investment firm Silver Lake.
Under the terms of the agreement, Silver Lake will pay $124 million to Focus Media, in exchange for the equity ownership of Allyes. Focus Media had acquired the internet advertising service company, reportedly the largest in China, back in February 2007.
Certain remaining shareholders of Allyes also agree to sell their equity ownership in Allyes to Silver Lake, so that in time the investment firm will own a controlling stake in Allyes. The transaction is expected to close soon, subject to customary closing conditions.
Established in 1998, Allyes is said to be the largest online media service provider in China, offering a suite of interactive marketing solutions. Allyes markets a proprietary suite called AdForward,which includes online ad-publishing, creative production, tracking, targeting and performance analysis products.
In December 2008, Google was rumored to be eying Allyes as well, after an acquisition deal with Microsoft fell through, but the deal never materialized.
Silver Lake’s investment portfolio includes companies like Skype, Avaya and IPC.
Silver Lake is a private investment firm focused solely on making large-scale investments in leading technology companies. We are partners to world-class management teams who seek to use our capital and expertise to build and extend their market leadership. Their core investment thesis is that the technology industries represent an extraordinary yet under-exploited target for large-scale private investments.
Allyes AdNetwork is an Chinese interactive marketing services provider focusing on Internet advertising technologies, online media service agency, and performance-based marketing.
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