Chinese data center services provider 21Vianet, has entered into definitive agreements to acquire DYXnet Group’s Dermot Entities, which include the Virtual Private Network (VPN) business unit operated by Dermot Holdings Limited and its subsidiaries.

DYXnet Group is a major ICT service provider in the Greater China Region.

Through the operation of Dermot Entities, DYXnet Group’s current total network connectivity reaches over 700 cities in Mainland China, Hong Kong, Taiwan, Vietnam and Singapore.

Through this acquisition, 21Vianet is expected to expand its data transmission infrastructure across the Greater China region and deliver high-performance VPN connectivity solutions by utilizing Dermot Entities’ advanced network and infrastructure.

After the acquisition, the management of the Dermot Entities is expected to remain in place and stay actively involved in Dermot Entities’ day-to-day management in at least the next two years.

DYXnet Group will retain both data center and contact center business units.

21Vianet’s chairman and CEO Josh Chen said: “We believe this acquisition will serve as an integral component of our overall cloud market strategy, as businesses increasingly seek reliable, secure, and highly customizable enterprise grade cloud services.”

DYXnet Group’s founder and CEO Lap Man said: “leveraging on 21Vianet’s strengths in data center, cloud computing and content delivery capabilities in China, we are expecting to see a full array of mobile cloud network services offerings in the marketplace, enabling enterprise clients to have a unique, superb and diverse experience.”

This May, 21Vianet entered into a partnership with US-based Aryaka for leveraging its own infrastructure assets with Aryaka’s global network of distributed Points of Presence (PoPs), aiming to make advanced accelerated network, application and cloud services available to its customers.

This June, 21Vianet entered into definitive agreements to invest in Aipu Group, one of the largest ISPs in China with operations in 11 cities across the country.

Based on the agreement, 21Vianet will own an approximately 50% ownership interest in the Aipu Group and become its single largest shareholder.

The transaction is expected to close in Q3 2014.