Beijing-based Chinese security software maker Cheetah Mobile Inc. has acquired an additional 22.2% stake in Chinese mobile Internet firm Moxiu Technology (Beijing) Co., Ltd. for a total of RMB30 million (US$4.9 million) in cash, according to Cheetah’s official announcement.
Upon completion of the transaction, Cheetah will become the majority shareholder of Moxiu Technology with a stake of around 50.5%.
"Looking forward, we see significant synergies for Cheetah and Moxiu to jointly develop, cross-promote and integrate their respective products and services," says Fu Sheng, chief executive officer of Cheetah. "We believe this investment will strengthen Cheetah’s overall mobile offering, helping to expand our promotional channels and product lines."
In May, Cheetah raised US$168 million on the New York Stock Exchange in an initial public offering.
Cheetah Mobile is backed by Matrix Partner China, which owned 6.3% of the company, and Tencent Holdings Ltd., which held an 18% stake, according to securities filings submitted by Cheetah before the IPO. The company is 54.1% owned by Chinese securities software firm Kingsoft Corporate Ltd.
Founded in 2008, Moxiu Technology is mainly engaged in the development, research, and provision of mobile user-generated content services and mobile launchers.
Cheetah Mobile is the second largest Internet security software provider in China with monthly active users of around 362 million as of March 2014.