Digital China will set up JV with SVG

Chinese IT product distributor Digital China has entered into an initial agreement with government-backed Suzhou Ventures Group (SVG) to set up a joint venture.

The venture will focus on providing information technology value-added services and innovative solutions.

Digital China will take a majority stake in the venture with an injection of part of its IT business. SVG will take the remaining stake with an investment in cash. Both sides plan to set up a venture capital fund to invest in information technology business.

Digital China, founded in 2000 and listed on the Stock Exchange of Hong Kong in 2001, has grown into one of the largest IT distributors in China.

The company said in a statement that the partnership with SVG would not only help expand scope for its business but also bring more opportunities in the future. The picture is of Guo Wei, CEO of Digital China.