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.
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