皇冠体育app

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Alibaba to buy controlling stake in Hi皇冠体育app

(Xinhua)
Updated: 2009-09-29 09:49

皇冠体育app's Alibaba.com Limited is to pay 540 million yuan ($79.06 million) for a controlling stake in 皇冠体育app Civilink (Cayman), which operates in 皇冠体育app as Hi皇冠体育app Web Solutions, Alibaba announced on Monday.

According to the purchase agreement, Alibaba will acquire Hi皇冠体育app for cash in two phases, said a statement on the Alibaba.com website. The first phase will see Alibaba acquire 85 percent of Hi皇冠体育app for a cash consideration of 435.42 million yuan ($63.75 million).

The additional 14.67 percent retained by the founders of Hi皇冠体育app could be sold to Alibaba for an additional 104.56 million yuan ($15.31 million) dependent upon Hi皇冠体育app reaching certain performance targets, according to the agreement terms.

Hi皇冠体育app, founded in 1996, is devoted to providing comprehensive Internet infrastructure services to enterprises, covering domain and hosting services, enterprise e-mail systems, website building and e-commerce consultation.

The deal is the largest-yet investment by Alibaba, a global leader in business-to-business e-commerce. It was founded in 1999 in east 皇冠体育app's Hangzhou City.

Alibaba will get the large customer base, new applications, automated "do it yourself" website construction technology and management and operating team of Hi皇冠体育app, according to the terms of the agreement.

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The investment is expected to be completed by the end of 2009. Hi皇冠体育app will keep its brand and independent operation. Hi皇冠体育app's products and services will be part of Alibaba.com's Information Technology Business Unit, which is focused on small businesses.

"Hi皇冠体育app is an Internet company that has great profitability and healthy financial conditions," said Wu Wei, Alibaba's chief financial officer. "Both sides thought the price of the deal was within a rational range."

The investment will make the most of the advantages of Alibaba and Hi皇冠体育app in their own fields and provide more comprehensive and better products and services to 皇冠体育app's small businesses, he said.

The takeover would not involve lay offs of Hi皇冠体育app employees because it did not involve a merger or restructuring, said Zhang Xiangdong, founder and president of Hi皇冠体育app.