View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Software
April 14, 2014

Alibaba to buy mapping tools provider AutoNavi for $1.5bn

Chinese firm hopes the deal will help it compete better in the global market.

By CBR Staff Writer

E-commerce firm Alibaba has announced it has signed an agreement to acquire Chinese digital map content provider AutoNavi Holdings for $1.5bn.

The deal, which is expected to complete in the third quarter of 2014, will help Alibaba increase its revenue through tapping AutoNavi’s mapping technology expertise, helping it compete with other major players in the local market such as Tencent and Baidu.

AutoNavi chairman and chief executive officer Congwu Cheng said the transaction is believed to maximise value for the company’s shareholders.

"We also believe that Alibaba is a great home for our employees and customers and that Alibaba will be able to provide us with great resources and strategic benefits to increase adoption of our location-based services in the China mobile Internet ecosystem," he said.

Under the deal, shareholders of AutoNavi will receive $5.25 in cash per ordinary share or $21 in cash per American depositary share of the company.

Alibaba chief executive officer Jonathan Lu said of the deal, "As a result of this transaction, we believe AutoNavi will continue to be a strong player in an increasingly competitive map applications and local services market."

The acquisition is subject to customary closing conditions and approval from at least two-thirds shares of the Company.

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

Alibaba already owns over 28% in AutoNavi, and following the acquisition, the company will operate as a wholly-owned subsidiary.

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU