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Alibaba.com Buys $64m HiChina Stake
Alibaba.com (1688.HK) plans to acquire 85% of China Civilink (Cayman), which operates in China as HiChina Web Solutions, for $63.75 million in cash by the end of the year, Alibaba.com announced September 28. After the acquisition is complete, HiChina will become a subsidiary of Alibaba.com but will keep its own brand name and operations.
HiChina founders will retain 14.67% in the company and have the option to sell their remaining stake to Alibaba.com over the next three years for an additional $15.31 million in cash, dependent upon HiChina reaching certain performance targets.
HiChina has more than 550 employees and provides web, server and email hosting, website development and domain name services. A majority of HiChina's more than 200,000 customers do not overlap with the existing Alibaba.com customer base, said the announcement.
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