TCTZF Tencent Holdings Limited (PK)

SHANGHAI--Tencent Holdings Ltd. (0700.HK), one of China's largest Web companies, said it has agreed to acquire a minority stake in U.S.-based Epic Games Inc., a developer of 3D game-engine technology.

In a statement to the Hong Kong stock exchange late Tuesday, Tencent said the deal is expected to close within one month. However, financial terms of the investment weren't disclosed.

Epic's products and services include the Unreal Engine, the market-leading 3D game engine technology used by many game development studios globally; the billion-dollar "Gears of War" franchise for Xbox 360, the multimillion-selling "Unreal" and "Unreal Tournament" games for PC and consoles and "Infinity Blade," one of the top-grossing game series for iOS.

Write to Rose Yu at rose.yu@dowjones.com