Baidu Inc. (Nasdaq: BIDU) is set to buy application store 91 Wireless from NetDragon Websoft Inc. for $1.85 billion.
The deal is believed to be one of the largest in the Chinese information technology sector, as well as part of a diversification strategy on the part of Beijing-based Baidu, the developer of a Chinese-language Internet search engine.
Baidu is buying the 57.4 percent stake owned by NetDragon and remaining shares from other shareholders.
Netdragon, based in Fuzho, China, is a developer of multiplayer online games and mobile applications.
In May, Baidu acquired the online video business of technology company PPS for $370 million.