Alibaba Group Holding Ltd. said Sept. 24 that it completed the acquisition of a 33% stake in Ant Financial Services Group.
The e-commerce giant in February 2018 announced the deal to purchase an interest in the company that operates the Alipay payments services platform.
Alibaba said there would be no cash element to the deal. Rather, it would provide certain intellectual property rights exclusively to Ant Financial in return for newly issued equity.
Upon closing of the deal, the companies terminated an existing profit-sharing arrangement. Under the arrangement, Ant Financial paid royalty and technology service fees equal to 37.5% of its pretax profits to Alibaba.
