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Hong Kong-listed Alibaba acquires Alisoft Business Management Software Division From Alibaba Group

Posted by Aliuser on Aug 18, 2009 in Alibaba Hong Kong

Alibaba.com (HKSE1688) and its parent company Alibaba Group embarks on another internal restructuring following its announcement of the Q2 financial report 2009 last week.

Both companies have signed an agreement in which Hong Kong-listed Alibaba will acquire Alisoft‘s business management software division at the cost of RMB 208 million (US$30.5 million). Alisoft is the wholly-owned software subsidiary of Alibaba Group.

Alisoft was set up in 2007 with a missionary statement

Payment will be made in form of cash (RMB 193.4 million) and equity incentive awards (RMB14.56) to employees being transferred.

Expected to be completed by September 1, 2009, the transaction will cover Alisoft’s application software product line for small-sized enterprises and the related assets, client contracts, and employees. Alibaba.com will assume all customer contracts and the associated business liabilities after the transaction is completed

The report published by Alibaba.com shows that the company will take over contracts with total value of RMB19.62 million.

The software products offered by the BMS Division are delivered to customers through the Internet under the “Software as a Service” (SaaS) model.

“Alibaba Group is pleased to be able to offer Alibaba.com such a high quality asset as Alisoft’s BMS Division, the industry leader in ‘Software as a Service.’ The BMS products have been developed specifically to address the emerging needs of small businesses engaging in e-commerce,” said Jack Ma, founder, chairman and chief executive officer of Alibaba Group, and chairman of the board of Alibaba.com.

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