Alibaba.com has acquired HiChina Web Solutions, a leading internet infrastructure service provider. Alibaba has purchased 85% of HiChina’s shares .
HiChina’s management will initially retain the remaining 15% of its company’s shares but will have the option to sell them to Alibaba subject to meeting certain post-completion performance milestones during 2011 to 2015.
The company outlined key strategic benefits from this acquisition:
Large customer base: A majority of HiChina’s more than 200,000 customers do not overlap with the existing Alibaba.com customer base, allowing for increased synergy and opportunities across both companies.
New, value-added applications: While Alibaba has been a leading platform for connecting businesses online, HiChina’s applications, which include domain name services, web and server hosting services, email hosting services and website design and development services — will allow the company to offer tools and features to operate and manage online businesses more effectively without leaving the Alibaba.com platform.
Advanced and automated “do it yourself” website technology: HiChina’s product offering will become part of Alibaba.com’s Information
Technology Business Unit (ITBU), which is focused on providing small businesses with a comprehensive solution to challenges that arise from the implementation of hardware, software and internet-based services as well as IT maintenance.
Digital East Asia
reported that Alibaba’s states HiChina is a strategic fit with the business vision of Alibaba.