BEIJING, Aug. 31, 2012 /PRNewswire-Asia/ -- Qihoo 360 Technology Co. Ltd. ("Qihoo 360" or the "Company") (QIHU), a leading Internet company in China, today announced that its subsidiaries recently entered into definitive agreements with a subsidiary of Beijing Electronic Zone Investment and Development Co., Ltd to purchase new office premises with an area of approximately 69,205 square meters in Chaoyang District, Beijing, China, for a total cash consideration of RMB1,384 million (US$218 million). The premises will be used as the Company's new principal office to meet the demand arising from the Company's business expansion and increase in headcount. The Company's current leased principal offices will undergo major re-construction according to the municipality's urban redevelopment plan.
The Company plans to fund the purchase primarily through its operating cash flow and cash reserves and pay in installments upon completion of various milestones in accordance with the agreements. Cash payments related to the purchase for 2012, 2013 and 2014 are approximately RMB142 million (US$22 million), RMB718 million (US$113 million), and RMB524 million (US$82 million), respectively.
Mr. Xiangdong Qi, President of Qihoo 360 commented, "In 2011, we more than doubled our headcount, and will continue to add talented professionals to our team to support the rapid growth of our business. We believe a centralized office space will enhance our operational efficiency as we continue to execute on our core strategy to maintain our market leading position and to further diversify our products and services."