Infinity, CSVC invest $73m in Chinese IT company

Israel's Infinity Equity has teamed again with China Singapore Suzhou Industrial Park Venture Partners, this time to back a spin-out of Hong Kong-listed technology company Digital China Holdings.

Infinity Equity and China Singapore Suzhou Industrial Park Ventures have led a 500 million yuan ($73 million; €50 million) investment in Digital China Information Technology Service, an IT service provider in China that spun out from publicly listed Digital China Holdings.

Infinity has invested $15 million (€10 million) in the company from its $350 million I-China Fund, which makes investments in late-stage Israeli technology companies and in Chinese businesses that licence and develop Israeli technologies. The firm manages assets of more than $600 million and has invested in 45 companies.

In June, Infinity invested $8 million in China Medicine On-Line, which provides telemedicine services in Shanghai and Nanjing.

CSVC was established in 2001 with registered capital of 1.73 billion yuan. It focuses on investments in semiconductors, micro-electronics, software, bio-tech and new energy industries. It is a wholly owned subsidiary of Suzhou Ventures Group, a state-backed investment firm with more than 10 billion yuan of assets under management.

Infinity's first China-focused fund was raised in conjunction with Suzhou Ventures Group in 2004.