Digital China has announced the acquisition of a 70% stake in Shanghaai YunJiao Information Technology Co., Ltd. for 252 million RMB, aiming to strengthen its cloud computing capabilities.

Overview of the Target

Shanghaai YunJiao Information Technology Co., Ltd. (hereafter referred to as ‘YunJiao’) has positioned itself as a leading provider of cloud computing value-added services in China. The company is dedicated to bringing cloud solutions to every corner of the world, focusing primarily on public and hybrid cloud platforms for migration, operations management, and software development. Over the years, YunJiao has established top-tier partnerships with multiple cloud vendors, providing a range of cloud-related technical consulting, training, operations, and optimization services to numerous Fortune 500 companies and other enterprises. Its international operations have extended into Southeast Asia and North America.

Industry Overview in China

The cloud computing industry in China has experienced exponential growth, driven by increasing digital transformation across various sectors. Major technology firms, including Alibaba Cloud, Tencent Cloud, and Huawei Cloud, have started to dominate the market, thereby intensifying competition and innovation. As businesses seek to harness cloud technology for efficiency and scalability, the demand for cloud services is projected to rise significantly in the coming years.

Furthermore, the Chinese government's supportive policies are enhancing the development of the cloud sector by encouraging investments in cloud infrastructure and promoting digital adoption among enterprises. The combination of these government in