Baidu Inc announced that it had agreed to buy Netdragon Websoft Inc's app store. The Chinese-language Internet search provider will be acquiring 91 Wireless from the Hong Kong-listed firm for USD 1.85 billion in cash. This would make this transaction the largest so far in IT sector in the world's second-largest economy. 91 Wireless belongs to the top three app stores in China based on the number of users. The deal is expected to be closed by the fourth quarter of 2013.

Baidu said it is currently diversifying its assets. The purchase of China's biggest Internet Services Provider was seen as part of its overall strategy. Baidu Chief Executive Robin Li said, "The acquisition of 91 Wireless significantly strengthens our mobile app distribution capability." Baidu bought a 57.4% stake in the app store from Netdragon. It purchased the rest of the stake from other shareholders. The current market capitalization of Baidu is pegged at USD 49.5 billion.