28 May Alibaba Deal Nets Smart Transport and Even More Cloud Partn…
Alibaba is now a major shareholder of a Shenzhen-listed company that focuses on intelligent transportation systems but also has its hands in aviation information services and surveillance cameras.
By acquiring a 15% stake in China TransInfo Technology from its controller Xia Shudong and a few affiliates at 16.12 yuan ($2.34) per share, Alibaba has become the company’s second-largest shareholder, according to agreements signed over the weekend. The deal in total will cost Alibaba 3.59 billion yuan.
Notably, China TransInfo also signed cooperation notes with Alibaba Cloud, the tech giant’s cloud unit. The partnership, according to China TransInfo, will focus on areas such as smart transportation and an emerging field called edge computing — a technology widely considered crucial to contemporary data safety.
Alibaba Cloud is becoming another highlight of the giant’s expanding business units and a prominent player in Asia. According to Q1 financial results, Alibaba Cloud’s revenue surged 76% year-on-year to 7.72 billion yuan, making up 8% of Alibaba’s total revenues.