21Vianet Group, Inc. is a holding company. The Company is a carrier-neutral Internet data center services provider in the People’s Republic of China. Its hosting and related services include managed hosting service, which dedicate data center space to house its customers' servers; interconnectivity services, which allows customers to connect their servers with Internet backbones in the People’s Republic of China and other networks through its Border Gateway Protocol network; CDN Services, or content delivery network services; Cloud Infrastructure Services, also known as infrastructure as a service; and value-added services, which include firewall services, server load balancing, data backup and recovery, data center management, server management, and backup server services. In September 2012, it acquired Fastweb International Holdings.
Dec 1, 2014
BEIJING, Dec. 1, 2014 (GLOBE NEWSWIRE) -- 21Vianet Group, Inc. (Nasdaq:VNET) ("21Vianet" or the "Company"), a leading carrier-neutral internet data center services provider in China, announced today that affiliates of Kingsoft Corporation Limited (HK:3888) ("Kingsoft"), a leading internet based software developer, distributor and service provider, Xiaomi Corporation ("Xiaomi"), a leading designer, manufacturer and marketer of mobile devices and other electronic equipment and a provider of internet services, and Temasek, a Singapore based investment company, have entered into definitive share purchase agreements with 21Vianet. All shares to be issued in these transactions are newly issued shares of 21Vianet.
Pursuant to the agreement with Kingsoft entered into on November 29, 2014, Kingsoft agrees to make a total of US$172 million investment in 21Vianet, with a purchase price of US$3.00 per ordinary share (the equivalent of US$18.00 per ADS). The investment will all be in newly issued 39,087,125 Class A and 18,250,268 Class B ordinary shares. Immediately after the closing of the transactions with Kingsoft, Xiaomi and Temasek, respectively, Kingsoft will hold approximately 11.6% equity ownership in 21Vianet, representing approximately 19.9% of the voting power. Kingsoft will have the right to nominate one director to 21Vianet's board of directors.
Pursuant to the agreement with Xiaomi entered into on November 30, 2014, Xiaomi agrees to make a total of US$50 million investment in 21Vianet, with a purchase price of US$3.00 per ordinary share ( the equivalent of US$18.00 per ADS). The investment will all be in newly issued 6,142,410 Class A and 10,524,257 Class B ordinary shares. Immediately after the closing of the transactions with Kingsoft, Xiaomi and Temasek, respectively, Xiaomi will hold approximately 3.4% equity ownership in 21Vianet, representing approximately 10.0% of the voting power. Xiaomi will have the right to nominate one director to 21Vianet's board of directors.
Pursuant to the agreement with Temasek entered into on December 1, 2014, Temasek agrees to make a total of US$74 million investment in 21Vianet, with a purchase price of US$3.00 per ordinary share (the equivalent of US$18.00 per ADS) . The investment will be in newly issued 24,668,020 Class A ordinary shares, or the equivalent of 4,111,337 ADSs. Immediately after the closing of the transactions with Kingsoft, Xiaomi and Temasek, respectively, together with its existing equity ownership, Temasek will hold approximately 13.1% equity ownership in 21Vianet, representing 5.8% of the voting power.
Upon the consummation of the investment contemplated under the share purchase agreement with Kingsoft, 21Vianet and Kingsoft will sign a business cooperation memorandum. Under the terms of the memorandum, 21Vianet will build, operate, maintain and provide technical support for new, state-of-art data centers in China to meet Kingsoft and its designated third party's next-generation cloud infrastructure requirements. Upon meeting certain conditions, 21Vianet will lease to Kingsoft and its designated third party (agreed to by 21Vianet) a combined minimum of 5,000 cabinets over the next three years.
"We welcome the new strategic investments by Kingsoft and Xiaomi and the additional investment by Temasek," said Mr. Josh Chen, co-founder, chairman and chief executive officer of 21Vianet. "We are very excited to see that Kingsoft and Xiaomi, leading global technology companies, share our vision and strategy in developing open-source technologies, cloud ecosystems and the next generation internet infrastructure in China. As we remain fully committed to the carrier-neutral, customer- neutral and cloud-neutral value proposition, we are confident that their investments offer significant strategic value in strengthening our core operations and expanding new business opportunities."
Mr. Shang Hsiao, Chief Financial Officer of 21Vianet stated, "By partnering with Kingsoft and Xiaomi, not only will we be able to expand the scale of our data center footprint, but we will also be able to develop the next-generation infrastructure platform, helping fuel the continued growth of mobile Internet traffic and cloud computing technology in China. 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. The transactions are subject to the satisfaction of customary closing conditions, with the closing expected to occur in January of 2015."
About 21Vianet
21Vianet Group, Inc. is a leading carrier-neutral internet data center services provider in China. 21Vianet provides hosting and related services, managed network services, cloud infrastructure services, content delivery network services, consumer broadband services and business VPN services, improving the reliability, security and speed of its customers' internet infrastructure. Customers may locate their servers and networking equipment in 21Vianet's data centers and connect to China's internet backbone through 21Vianet's extensive fiber optic network. In addition, 21Vianet's proprietary smart routing technology enables customers' data to be delivered across the internet in a faster and more reliable manner. 21Vianet operates in 44 cities throughout China, servicing a diversified and loyal base of more than 2,000 customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises.
About Kingsoft
Kingsoft Corporation Limited (HK:3888) is a leading internet based software developer, distributor and service provider and principally engaged in research, development and operation of online games and office application software, information security software, internet browser, mission critical mobile applications, and provision of cloud storage, cloud computation, online marketing services and internet value-added services across device.
About Xiaomi
Xiaomi was founded in 2010 and has brought together smart people from Google,Kingsoft, Microsoft, Motorola, Yahoo, and other Internet and tech companies. Xiaomi creates remarkable hardware, software, and Internet services for, and with the help of, Mi fans. Xiaomi's hardware products currently include smart phone, set-top box, smart TV, router, Xiaomi Pad and accessories such as Xiaomi powerbank and Xiaomi wristband. Xiaomi sells direct to customers to keep prices competitive. Xiaomi shipped more than 18 million handsets in China in 2013 and has launched products in Taiwan, Hong Kong, Singapore, Malaysia, Philippines, India and Indonesia.
About Temasek
Incorporated in 1974, Temasek is an investment company based in Singapore. Supported by 11 offices globally, Temasek owns a S$223 billion portfolio as at March 31, 2014, mainly in Singapore and Asia. Temasek's investment themes centre on: Transforming Economies; Growing Middle Income Populations; Deepening Comparative Advantages; and Emerging Champions. Its portfolio covers a broad spectrum of industries: financial services; telecommunications, media and technology; transportation and industrials; life sciences, consumer and real estate; as well as energy and resources.
Safe Harbor Statement
This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. 21Vianet may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about 21Vianet's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: 21Vianet's goals and strategies; 21Vianet's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, 21Vianet's services; 21Vianet's expectations regarding keeping and strengthening its relationships with customers; 21Vianet's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where 21Vianet provides solutions and services. Further information regarding these and other risks is included in 21Vianet's reports filed with, or furnished to the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and 21Vianet undertakes no duty to update such information, except as required under applicable law.
21Vianet Announces US$100 Million Investment From Temasek
2013-09-30 09:00:00.0
BEIJING, Sept. 30, 2013 (GLOBE NEWSWIRE) -- 21Vianet Group, Inc. (Nasdaq:VNET) ("21Vianet"), the largest carrier-neutral internet data center services provider in China, announced today that Singapore investment company, Temasek, has through its investment vehicle, entered into a definitive share purchase agreement with 21Vianet and certain shareholders of the Company.
Pursuant to this agreement, Temasek will make a US$100 million investment in 21Vianet. Approximately 87% of the investment will be newly issued Class A ordinary shares and the remainder will be Class A ordinary shares to be sold by existing shareholders. The purchase price is US$15.00 per ADS, or US$2.50 per ordinary share. Immediately after the closing of the transaction, Temasek will hold approximately 10% equity ownership in 21Vianet. Temasek will have the right to nominate one director to 21Vianet's board of directors after the closing. The transaction is expected to close in October 2013, subject to the satisfaction of customary closing conditions.
"We welcome Temasek's investment in our Company and believe that its deep expertise in Asia's telecom industry will significantly benefit 21Vianet going forward," said Mr. Josh Chen, co-founder, chairman and chief executive officer of 21Vianet. "With this investment from one of the most reputable investment companies in Asia, 21Vianet can better leverage Temasek's extensive telecom industry connections, know-how and investments, allowing us to connect with their existing portfolio of companies and further expand our business opportunities going forward. We are confident that by securing a large institutional shareholder, we further strengthen our growth trajectory and ability to generate shareholder value over the long term."
Temasek is a Singapore based investment company established in 1974. Supported by 10 affiliates and offices in Asia and Latin America, Temasek owns a S$215 billion portfolio as of March 31, 2013, mainly in Singapore and Asia. Temasek's investment themes focus on transforming economies; growing middle income populations; deepening comparative advantages; and emerging champions. Its portfolio covers a broad spectrum of industries that include financial services; telecommunications, media and technology; transportation and industrials; life sciences, consumer and real estate; and energy and resources.
21Vianet may be the largest carrier-neutral internet data center services provider in China, but it's had a bumpy month. Its Nasdaq stock halved in price, plummeting from around $30 to $15 early in September, when an invester accused it of fraud. It's steady now, and trading higher than before the summer, but the doubts seem to have checked its growth.
This may be a shame, as the fraud allegations came from Trinity Resarch Group, an anonymous bunch of investors that Bloomberg thinks probably profited form short selling the stock. By contrast, big bodies such as Credit Suisse and Morgan Stanley have kept the faith, with Credit Suisse explicitly saying that 21Vianet is not a "Ponzi scheme".
21Vianet's management have gone on the offensive, using phone briefings to counter the allegations, and pointing to a busy record of recent partnerships and investments by the company. In May, 21Vianet added US WAN optimization firm Aryaka's network of distributed Points of Presence to its own infrastructure, so customers get a dedicated private core network and accelerated access to services through POPs in Guangzhou, Xi’an, Beijing and Shanghai.
In June, 21Vianet invested in Aipu Group, one of the largest regional internet service providers with operations in 11 cities across China. 21Vianet will own about half of the Aipu Group and become its single largest shareholder.
Top of the PoPs
But in September, notwithstanding the investor wobbles, 21Vianet's partnership program took off: deals with IBM, Microsoft and Huawei allowed it to launch payment services, managed cloud, and a public software defined network (SDN) which 21Vianet reckons is China's largest.
In late September, 21Vianet, already a Microsoft partner, added Microsoft's WebDirect payment services to the Azure cloud which launched in the country back in March 2014. WebDirect is a pre-paid model enabling customers to order Windows Azure products and services and sign contracts online and prepay for these services by using Alipay and UnionPay payment systems.
Currently, the typical online contract will be valid for one year and the lowest package available to customers will cost CNY 700 (US$114), but there's a "One RMB Trial" program (terms and conditions apply), which gives customers a full public cloud Azure package for one month, valued at CNY 2,000 (US$365).
21Vianet also extended its partnership with IBM. In December 2013, IBM and 21Vianet introduced SCE+ (SmartCloud Enterprise+), a product which has now been renamed as CMS (Cloud Managed Services). CMS focuses on enterprise production workloads and support for SAP and Oracle's ERP and CRM products.
Back at the start of September. a deal with Huawei gave 21Vianet a commercial software-defined networking (SDN) enabled network. 21Vianet deployed a cloud fabric data center network based on Huawei’s CE12800 series data center switches and its Agile Controller, located at eight large-scale data centers in Chine3se cities including Beijing, Guangzhou, Nanjing and Wuhan.
Huawei said the one-click service deployment function of Huawei’s solution increases the speed of 21Vianet's cloud service provision tenfold, cuts 21Vianet's new service innovation period from six months to only one month, and increases link bandwidth utilization from 50 percent to 80 percent.
The two companies are jointly developing an agile traffic engineering solution based on Huawei’s cloud fabric, which will allow flexible data center interconnect and network traffic optimization.
21Vianet said in the next phase, it will expand the deployment of the SDN-enabled solution to more than 80 large-scale data centers in over 40 cities.
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