Public transport software provider China TransInfo announced Monday a RMB 3.59 billion (around $520 million) investment from Alibaba, which is moving into the smart vehicle market with cloud-based solutions.

Alibaba acquired a 15% stake in the company at RMB 16.12 ($2.34) per share from Xia Shudong, China TransInfo’s president, and some affiliated enterprises. The e-commerce giant is the company’s second-largest shareholder after Xia, according to an announcement released Tuesday. Shares of the Shenzhen-listed company soared 10.0% to RMB 20.21 by market close the same day.

The two parties will work together to accelerate the mass deployment of intelligent public transport solutions and cloud-based services for public security over the next three years, said the company in the announcement. Alibaba did not reveal further details when contacted by TechNode on Tuesday.

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

Jill Shen

Jill Shen is Shanghai-based technology reporter. She covers Chinese mobility, autonomous vehicles, and electric cars. Connect with her via e-mail: jill.shen@technode.com or Twitter: @yushan_shen