Fangda Partners & Jun He recently facilitated one of the largest private equity investments in China’s TMT sector this year. Silver Lake, a US-based PE firm focusing on technology and technology-enabled industries, has agreed to acquire a 62% stake in Allyes Online Media from Focus Media for US$124m.

Established in 1998, Allyes provides online advertising agency services, advertising networks, performance marketing, advertising technology solutions and online market research to MNCs such as Sony, Pepsi and Chrysler and PRC companies such as China Merchants Bank and Taobao. The company was sold to  Focus Media in 2007 for US$300m – a deal on which Simpson Thacher advised. 

This deal marks Silver Lake’s second investment into the mainland, indicating its increasing interest in China’s booming technology sector. Earlier this year the company also acquired stakes in Shanghai-based Spreadtrum Communications, a NASDAQ-traded technology company that makes chips for GSM and TD-SCDMA mobile communications. ALB

Related stories:

• PRC firms ride on wave of RMB private equity funds (4 August 2010)
• TMT: A Brave New World (2 December 2009)
• FEATURE: Private equity: growth accelerator (3 December 2009)
• Firms pack in the partner promotions as sentiment improves (29 July 2010)
• Jun He's triple whammy prelude to new US office (14 May 2010)