Alibaba Health acquires some of Alibaba's marketing services for HK$13.51bn

Alibaba Health Information Technology has inked deal with Alibaba's eCommerce platform Taobao to obtain rights to some marketing tools and services under the healthcare categories at a consideration cost of HK$13.51 billion.

According to the share purchase agreement released on Hong Kong Stock Exchange on 28 November, Alibaba Health said that it would take over AJK Technology Holdings from Taobao Holdings and acquire its exclusive marketing materials review right to provide marketing materials review services, in the condition of the company issuing 2.56 billion shares at HK$4.5 per share and paying the USD equivalent of HK$2 billion in cash to Taobao Holdings. 

The ‘‘exclusive marketing materials review right’’ refers to the exclusive right to operate and manage the marketing materials review services under the healthcare categories on the Tmall platform, to the absolute exclusion of the Alimama Group and the Taobao and Tmall Group.

Under the agreement, Alibaba Health will gain access to “brand-based” and “performance-based” marketing products and services provided by Alimama, Alibaba's digital marketing tool. The company will also gain “value-added services” that include consultation and suggestions to merchants’ questions related to marking promotions under healthcare categories. 

Alibaba Health said it believes its acquisition of the marketing services will enable it to offer one-stop solutions to better serve healthcare merchants’ needs, to provide market competitive services and solutions to merchants, to optimise healthcare merchants’ marketing efficiency and return on investment, to improve the Group’s revenue growth and profitability outlook, to capture cross-selling opportunities, and to foster business growth. 

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The company added the strategic value of the acquisition to the group will be a synergistic addition to the Group’s healthcare ecosystem, and it represents an opportunity for the Group to diversify its business, expand its presence and provide more value-added services along the healthcare industry value chain. 

MARKETING-INTERACTIVE has reached out to Alibaba Health for a statement. 

Alibaba Health is Alibaba Group’s flagship vehicle that offers one-stop solutions to consumers through integrating online and offline resources of the pharmaceutical and healthcare industries. Alibaba Group acquired majority ownership of Alibaba Health in 2015. Both Alibaba Health and Taobao Holdings are direct wholly owned subsidiaries of the Alibaba Group. 

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