Kingsoft, Xiaomi, Temasek To Invest In Data Center Firm 21Vianet

(RTTNews) - 21Vianet Group, Inc. (VNET) Monday said affliates of Chinese software developer Kingsoft Corp.. smartphone maker Xiaomi, and Singaporean investment firm Temasek will invest a total of $296 million in the data center company.

Kingsoft will invest $172 million and own about 11.6 percent of 21Vianet, with around 19.9 percent voting power.

21Vianet will also sign a business cooperation memorandum with Kingsoft, under which it will build and maintain data centers in China for Kingsoft and its designated third parties. In addition, 21Vianet, upon meeting certain conditions, will lease a minimum of 5,000 cabinets over the next three years to Kingsoft.

Xiaomi will invest $50 million and hold around 3.4 percent interest, with 10 percent voting power. Temasek will invest $74 million and own 13.1 percent of 21Vianet, with 5.8 percent voting power.

"Together, Kingsoft, Xiaomi and Temasek will be not only our strategic investors, but also our partners as we execute our business strategies, capture growth in the internet infrastructure market and generate shareholder value over the long term," Shang Hsiao, the chief financial officer of 21Vianet, said in a news release.

21Vianet expects the transactions to close in January 2015.