Qihoo 360 Technology (NYSE:QIHU) has reported acquired Chinese web game operator Gamewave Group Limited.

The news was traced back to the microblog of Lin Jun, founder of tech news site Leiphone.com. An unnamed source close to Gamewave added that the deal is about to close, yet the two companies have not yet signed a purchase agreement.

Gamewave CEO Yu Hong admitted that the company had business talks with Qihoo 360, but denied the acquisition rumor.

Established in 2008, Gamewave generates most of its revenue from operation of web games. In 2011, company revenue reached 630 million yuan.

Last year, Gamewave’s overseas revenue was around 100 million yuan, mainly from the Asian region. The company plans to tap the European and North American market this year, and intends to roll out an array of mobile games.

Previous reports said Qihoo 360 has acquired iDream Sky, the Chinese partner of Temple Run 2, while CEO Chen Xiangyu has denied the reports.