Hillhouse Capital, a private equity firm, and ST Telemedia, an investor in the communications, media and technology space, agreed to acquire a 5.1% stake in GDS, a developer and operator of high-performance data centers in China, for $505m. Hillhouse will invest $400m and ST Telemedia $105m. The transaction is expected to close in the next few days. “I am very pleased to secure this capital to support our growth at a time when new IT infrastructure development in China is going to a higher level. Furthermore, I am very pleased to have done it in a way which adds value to GDS and strengthens our shareholder base. Hillhouse is one of the most respected investors, and we look forward to working with them over the long term. I also very much appreciate the on-going support from our strategic partner, STT GDC,” William Huang, GDS Chairman and CEO.