Alibaba.com Acquires Vendio, Continues to Advance Global E-Commerce Platform

HONG KONG--(BUSINESS WIRE)--Alibaba.com (HKSE:1688.HK) (HK.1688), the world’s leading e-commerce company for small business, has entered into an agreement to acquire Vendio Services, Inc., a multi-channel e-commerce company providing a one-stop solution for small businesses that are selling online across multiple channels . From the Vendio Platform, merchants can source products from Alibaba.com’s trusted supplier network and sell through channels such as eBay, Amazon, and their own Vendio-supported store. This platform is offered on Software as a Service (SaaS) cloud-computing model to help businesses increase their sales while managing costs to enhance their profit margin.

Through this acquisition, Alibaba.com gains access to more than 80,000 targeted small businesses in the U.S. with potential sourcing needs from suppliers on Alibaba.com’s sourcing platform and AliExpress (www.aliexpress.com), a wholesale transaction platform operated by Alibaba.com. In addition, the acquisition will provide access to e-commerce storefronts and multi-channel selling services for AliExpress customers looking to reach consumers online through the Vendio Platform. AliExpress and Vendio customers are able to source efficiently from the 5 million+ products available on AliExpress and then sell goods through Vendio on the retail marketplaces of their choice around the world.

With the acquisition, Alibaba.com will connect AliExpress directly with Vendio through back-end integration, creating an AliExpress tab within the Vendio Platform. This integration allows Vendio users to easily access a private sourcing experience within their Vendio inventory and sales management interfaces. Exclusive guarantees, promotions and special deals on AliExpress wholesale products will also be available to Vendio users.

AliExpress complements Vendio by strengthening the first step in the business cycle for small businesses: how to locate products for sale. According to a recent survey, more than 80 percent of Vendio customers have never used online supplier services and nearly 90 percent have never tried to take advantage of import-export. This integration creates an opportunity for Vendio customers to expand their supply chain and lower their cost through instant, free access to the more than 1.4 million supplier storefronts on Alibaba.com and AliExpress. Now Alibaba.com and Vendio members have access to complete e-commerce solutions to meet their sourcing, buying and selling needs through an integrated set of tools and features.

“At Alibaba.com, our goal is to make it easier for our customers around the world to do business by providing solutions that increase margins, productivity and competitiveness through e-commerce,” said David Wei, chief executive officer of Alibaba.com. “We continue to look for synergies and investment opportunities to grow our customer base, acquire additional technology and add new applications that will help our customer base grow and prosper. Vendio is our first acquisition in the U.S. and we are open for more partnership opportunities. The connection of Vendio with Alibaba.com will completely integrate the e-commerce value chain between the B2B and B2C platforms, fully realizing the B2B2C model. I am confident that our complementary businesses will create enhanced opportunities for our customers. ”

“We identify with Alibaba.com’s vision of creating a seamless global e-commerce experience for business owners,” said Mike Effle, COO of Vendio. “We are particularly impressed by Alibaba.com's deep commitment to creating immense value for small businesses. Efficiently integrating Alibaba.com’s extensive supplier base will allow Vendio’s merchants to earn higher profit margins while providing unique and competitively priced products from around the world to their customers. The increased efficiency and product breadth will yield additional positive effects for the marketplaces we support and throughout the entire e-commerce ecosystem.”

The acquisition is part of the US$100 million investment plan for AliExpress that Alibaba.com announced in April 2010. It is expected to close in July 2010. After the closing, Vendio will become a new business unit within Alibaba.com and will retain its own brand name and operations. Mike Effle, current Vendio COO, will assume the role of the Vendio CEO and Rodrigo Sales, current Vendio CEO, will become a strategic advisor to the company.

Rothschild was the financial adviser to Alibaba.com for this transaction and Pacific Crest Securities was the adviser to Vendio for this transaction. Financial terms were not disclosed.

Alibaba.com (HKSE:1688) (1688.HK) is the global leader in e-commerce for small businesses and the flagship company of Alibaba Group. Founded in 1999 in Hangzhou, China, Alibaba.com makes it easy for millions of buyers and suppliers around the world to do business online through three marketplaces: a global trade platform (www.alibaba.com) for importers and exporters; a Chinese platform (www.1688.com) for domestic trade in China; and, through an associated company, a Japanese platform (www.alibaba.co.jp) facilitating trade to and from Japan. In addition, Alibaba.com offers a wholesale platform on the global site (www.aliexpress.com) geared for smaller buyers seeking fast shipment of small quantities of goods. Together, these marketplaces form a community of more than 50 million registered users in more than 240 countries and regions. Alibaba.com also offers business management software and Internet infrastructure services targeting businesses across China, and provides educational services to incubate enterprise management and e-commerce professionals. Alibaba.com has offices in more than 60 cities across Greater China, Japan, Korea, Europe and the United States.

Founded in 1999, Vendio Services, Inc. (www.vendio.com) helps small- to medium-sized merchants (SMM's) succeed by offering them an integrated solution to manage their sales seamlessly and cost-effectively across multiple online sales channels including their online store, Amazon.com, eBay, Google, Shopzilla, and more. Each year over 80,000 merchants use Vendio’s award winning multi-channel platform and applications to sell nearly $2 billion in merchandise. The company also operates Dealio (www.dealio.com), a shopping and coupons site for consumers. Vendio is headquartered in San Mateo, California with a development office in Romania.

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