Hangzhou, 1st February: Alibaba Group, the leading e-commerce provider in China has agreed to purchase a 33% stake in Ant Small and Micro Financial Services Group Company (Ant Financial).
Under the terms of the agreement, Alibaba will acquire newly issued equity from Ant Financial in exchange for certain intellectual property rights owned by Alibaba exclusive related to Ant Financial. After completion, Ant Financial will terminate paying Alibaba royalty and technology service fees. There will be no cash impact on Alibaba following the closing of the transaction.
Daniel Zhang, Chief Executive Officer of Alibaba Group, said, “This transaction is a significant step for Alibaba to enhance our long-term strategic relationship with Ant Financial as we continue to pursue our mission to make it easy to do business anywhere. Importantly, an equity stake in Ant Financial enables Alibaba and our shareholders to participate in the future growth of the financial technology sector, as well as the benefits of user growth and improved customer experience.”
Source: Alibaba Group press release