Chinese real-estate conglomerate Dalian Wanda Group has purchased Swiss sports marketing company Infront Sports & Media AG from private equity firm Bridgepoint for 1.05 billion euros ($1.2 billion), Infront announced in an online press release on Tuesday.
The deal will make Wanda Group, China's biggest property developer and owner of the country's largest cinema chain, Infront's majority shareholder with a 68.2-percent stake. The remaining minority stake will also be purchased by unidentified Chinese and global investors, Wanda executives said in an interview with Reuters.
Wanda Group Chairman Wang Jianlin said that their purchase of Infront will increase the company's impact in the culture and entertainment industry and to support China in its bid for international sporting events.
"By acquiring Infront, Wanda will also be in a position to increase its influence in the global sports industry and help raising the level of competition in Chinese sports. We are very confident to support Infront in its aim to become the number one global sports marketing company," said Wang.
Philippe Blatter, Infront's president and CEO, added that the acquisition would also help Infront to spread out into the Chinese market.
"We are looking forward to jointly tackle a variety of major expansion projects with the aim to strengthen our leading position in the global sports market," said Blatter. "Wanda is fully committed to actively contribute to Infront's ambitious growth plans and shares our long-term vision as well as our corporate values."
Headquartered in Zug, Switzerland, Infront has been producing World Cup television broadcast for FIFA via its subsidiary HBS. The company also has distribution rights for several Olympic winter sports and clientele including Italy's premier Serie A soccer league and the Chinese Basketball Association.
The recent acquisition is seen by analysts as part of Wanda's aggressive international expansion in a bid to distance itself from China's cooling property market. Earlier in January this year, the company also bought a 20-percent stake in Spanish football champion Atletico Madrid for 45 million euros.