E-commerce company Alibaba has agreed to acquire China-based digital map service AutoNavi for about $1.5bn, according to Reuters.
Shareholders will receive $21.00 per American Depositary Share, a premium of 1.7% on the price AutoNavi closed at on Friday and a 68% premium on the price at which AutoNavi floated on Nasdaq in a $107m initial public offering in 2010.
Alibaba initially invested $294m for a 28% stake in AutoNavi in 2013, Asian Venture Capital Journal reported, in a deal that would have valued the company at about $1.05bn.
AutoNavi raised a reported $40m in 2006 from Legend Capital, the investment subsidiary of diversified Chinese firm Legend Holdings, computer manufacturer Inventec, Walden International, Sequoia Capital, Legend Capital, ChinaValue Capital Advisors, Harbinger Venture Management, Indus Capital Advisors, Kleiner Perkins Caufield & Byers and MTI Capital, but neither Legend nor Inventec were listed as shareholders at the time of AutoNavi’s initial public offering.