According to Alibaba.com, the acquisition is expected to be complete by the end of the year, after which, HiChina will become Alibaba?s subsidiary while keeping its own brand name and operations.

Alibaba.com said that HiChina’s line of services will become part of Alibaba.com’s information technology business unit, which is focused on providing small businesses with assistance on hardware, software and Internet services issues.

HiChina founders, which retain 14.76% in the company, 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.

Founded in 1996, 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.

Actually, Alibaba.com will be buying the controlling interest in HiChina of SYNNEX Corporation, a leading international business process services company. SYNNEX is selling its controlling interest in HiChina Web Solutions in accordance with its overall strategy of focusing on synergistic expansion of its core competencies and services offerings to benefit its customers and OEM partners within existing and adjacent target markets.

Founded in 1999, Alibaba.com Limited is a global leader in business-to-business (B2B) e-commerce and the flagship company of Alibaba Group that makes it convenient for millions of buyers and suppliers around the world to do business online.

Source : Konaxis