Israel's Infinity invests in Digital China spin-off

TEL AVIV, Sept 2 (Reuters) - Israel's Infinity I-China Fund said on Tuesday it jointly invested $73 million with its partner China-Singapore Suzhou Industrial Park Ventures Co in Digital China Information Technology Service Co (DCITS).

Avishai Silvershatz, managing partner of the Infinity I-China Fund, said DCITS is the largest and most prominent company in which the fund has invested, noting the fund's investment was $15 million.

"This deal marks a major milestone in Infinity's implementation of its core strategy, essentially investing in leading Chinese companies which can also help Israeli and other foreign companies penetrate the Chinese market," he said.

The spin-off process of DCITS, which was Digital China Holdings Ltd (0861.HK) software and service arm, marks the next phase in the evolution of China's IT industry, shifting the focus from hardware distribution to providing solutions based on software and services, Infinity said.

Infinity was founded by IDB Development IDBD.TA subsidiary Clal Industries (CII.TA). (Reporting by Tova Cohen; Editing by Louise Ireland)