DCITS Raises $73 Million

DCITS, a provider of IT services in China, has raised $73 million in VC funding as part of a spinoff from Digital China Holdings Ltd. (HK: 861). The round was co-led by the Infinity I-China Fund and China Singapore Suzhou Industrial Park Ventures Co. 



The Infinity I-China Fund, the leading Israel-China Fund, announced today that, together with its partner China Singapore Suzhou Industrial Park Ventures Co. Ltd. (CSVC), it has led a 500RMB million ($73 million) investment round in Digital China Information Technology Service Co. Ltd. (DCITS).

A spin-off of Digital China Holdings Limited (DC – Stock code: 861.HK), the leading IT (Information Technology) company in China, DCITS is a leading provider of Information Technology (IT) services in China. It is principally engaged in the software and IT services business, including the provision of systems integration services, application software development, maintenance and outsourcing, as well as consultancy and training services to major customers, including government, telecom and the finance sector.

DCITS is the largest and most prominent company in which the Infinity I-China Fund has ever invested; and, Digital China is the strongest domestic brand in China's IT industry. Its market presence within major accounts in government and industry, execution capabilities, strategy as well as an unrivaled management team, all put DC and its spin-off in a clear leadership position. Our $15M investment in DCITS makes Infinity a partner in this great company. Moreover, this deal marks a major milestone in Infinity's implementation of its core strategy, essentially investing in leading Chinese companies which can also help Israeli and other foreign companies penetrate the Chinese market. With this new investment, such IT companies now have a natural partner in China, said Avishai Silvershatz, managing partner of the Infinity I-China Fund.

The spin-off process of DCITS, which used to be DC's software and service arm, marks the next phase in the evolution of China's IT industry, shifting the focus from hardware distribution to providing solutions based on software and services.

We have been working closely with DC's management for over a year. These relationships combined with the existing bond between DC and our Chinese partner, CSVC, made this unique opportunity accessible to us, said Mr. Amir Gal-Or, managing partner of the Infinity I-China Fund.

Mr. Fei Jianjiang, managing director of the Infinity I-China Fund, added, This high-profile deal demonstrates the strength and the depth of the brand and network of Infinity I-China and CSVC in China.

This investment marks another major step in building our presence in China and in advancing the cooperation between Israeli and Chinese companies, said Mr. Avi Fischer, deputy chairman, IDB Group and chairman of the board of the Infinity I-China Fund.

About Infinity I-China Fund

Infinity, founded by Clal Industries and Investments Ltd. from the IDB group, is one of the leading Israeli-related funds managing more than US$600 million and a portfolio of 45 companies. Since June 2005, Infinity has had 14 successful exits. The Infinity I-China Fund, the newest Infinity fund, is the largest fund that focuses on Israeli-Chinese related opportunities and serves as a bridge for Israeli-Chinese business initiatives and for other non-Chinese companies interested in doing business in China. The fund attracts high profile investors around the world, including IDB in Israel and the China Development Bank in China. The Infinity I-China Fund has a highly experienced international team spanning the globe with offices in Tel-Aviv, China mainland, Hong Kong and New York. For more information: www.infinity-equity.com. To schedule an interview, please contact Marjie Hadad, media liaison at marjie@netvision.net.il or call +972-54-536-5220.

About CSVC

China-Singapore Suzhou Industrial Park Ventures Co., Ltd (CSVC) was founded on 28th November, 2001 with a registered capital of 1.73 billion RMB. CSVC is a leading venture capital player focusing on semiconductor and micro-electronics, software, new materials, bio-tech and new energy industries with a portfolio of more than 45 companies. CSVC is a wholly owned subsidiary of Suzhou Venture Group (SVG), one of the largest players in the investment field in China with assets under management of more than 10 Billion RMB.


DCITS, a leading provider of Information Technology (IT) services in China, is a spin-off of Digital China (DC), the leading domestic IT company in China. Headquartered in Beijing, DC has $4.5 B in revenues and regional centers in 19 major cities in China. DC focuses on three major business segments: Systems Integration, IT Services and Distribution of IT products. DC distributes a vast range of IT products through a network of more than 9,000 resellers and agents across the country. DC was spun off from the Legend Group (together with Lenovo) and has been independently listed on the Hong Kong Stock Exchange since 2001.