NEWS2 August 2010

Tech investor Silver Lake takes majority stake in China’s Allyes

Asia Pacific M&A

CHINA— Technology investment firm Silver Lake has agreed a deal to become the majority stakeholder in digital marketing services agency Allyes Online Media Holding.

Allyes is a subsidiary of Chinese digital media group Focus Media Holding and offers online market research, ad agency services, performance marketing and advertising technology products to clients including Sony, Pepsi and Chrysler, as well as domestic companies such as China Merchants Bank and online shopping site Taobao.

The firm is headquartered in Shanghai and has offices in Beijing, Shenzen, Guangzhou and Chengdu.

Terms of the deal were not disclosed, but Silver Lake said that once completed it will be “one of the largest private equity investments in China this year”.

Allyes CEO David Zhu said: “Allyes looks forward to leveraging Silver Lake’s deep technology background and exceptional insights in the global digital markets as we continue to grow and innovate our business strategies.”

Eric Chen (pictured), Silver Lake’s managing director, said: “We are optimistic about Allyes’ future and believe that the company is well-positioned to leverage the growth trends and continue to develop as a leader in digital marketing. As Silver Lake’s largest investment in a Chinese company to date, Allyes is a strong and complementary addition to our portfolio of leading technology and technology-enabled businesses.”