Hangzhou, 1st February: Alibaba Group, the leading e-commerce provider in China has agreed to purchase a 33% stake in Ant Small and Micro Financial Services Group Company (Ant Financial).

Under the terms of the agreement, Alibaba will acquire newly issued equity from Ant Financial in exchange for certain intellectual property rights owned by Alibaba exclusive related to Ant Financial. After completion, Ant Financial will terminate paying Alibaba royalty and technology service fees. There will be no cash impact on Alibaba following the closing of the transaction.