E-commerce firm Alibaba acquired UCWeb, the China-based mobile browser developer in which it already held a 66% stake, today for an sum which, despite being undisclosed, Alibaba said represented the largest internet merger in Chinese history.
That statement means the deal, which will be conducted mainly in stock with some cash also involved, will surpass Baidu’s $1.9bn purchase of app distribution platform 91 Wireless in 2013.
Alibaba, set to go public in the US later this year, has been on an acquisition spree this year as it seeks to enhance its product offering. The full purchase of UCWeb indicates a desire to shore up its mobile business, particularly as rival Tencent has taken a large share of the market through its WeChat mobile messaging app.
“The move highlights the comprehensive integration of Alibaba and UCWeb following Alibaba’s investment in UCWeb in 2009 and 2013, and will enable deeper synergies between the companies by marrying Alibaba’s strengths in e-commerce, cloud computing and big data technology and UCWeb’s leading market position and technology in mobile,” the companies said in a joint statement.
Alibaba had invested a reported $540m into UCWeb. Nokia Growth Partners, the corporate venturing subsidiary of mobile device manufacturer Nokia, and venture capital firm GGV Capital invested an undisclosed amount into UCWeb in 2010, but it is not clear whether either had exited prior to Alibaba’s full takeover.
UCWeb will be incorporated into Alibaba’s UC Mobile unit, which will run its browser, mobile location, gaming, app store and reader activities.