Alibaba Group Holding is set to invest $590 million for a minority stake in Meizu Technology Corporation, a leading smartphone manufacturer in China.

This investment will be subject to customary closing conditions, said a statement.

As a result of the investment, Alibaba Group and Meizu will collaborate at both strategic and business levels to achieve a deeper integration of Meizu’s hardware and Alibaba Group’s mobile operating system.

Alibaba Group will provide Meizu with resources and support in the fields of e-commerce, mobile Internet, mobile operating system and data analysis with the aim of developing Meizu’s smartphone ecosystem.

Alibaba Group’s online shopping marketplaces will also become distribution channels for Meizu’s smartphones and other devices.

Jian Wang, chief technology officer of Alibaba Group, said: “The investment in Meizu represents a significant expansion of the Alibaba Group ecosystem and an important step in our overall mobile strategy as we strive to bring users a wider array of mobile offerings and experiences.”

Yongxiang Bai, Meizu’s chief executive officer, said: “This strategic collaboration with Alibaba Group will enable Meizu to further develop our smartphone business and our smart devices ecosystem.” - TradeArabia News Service