(Recasts, adds CEO's quote, details on plans)
LOS ANGELES, (Reuters) - China's largest e-commerce
company, Alibaba.com Ltd, made its second U.S.
acquisition in as many months and its chief executive said
Tuesday he was working on more deals to fuel global growth.
The Chinese company said it has entered into an agreement
to buy Auctiva, which provides listing and marketing tools to
vendors on e-commerce websites like eBay.
Alibaba, a fast-growing Web operator founded by outspoken
former schoolteacher Jack Ma, is building up its AliExpress
wholesale transaction platform aimed at small merchants.
Chief Executive David Wei said he is keen on more
acquisitions to add technology or already-proven commercial
applications to Alibaba's lineup.
"There are a number of deals in the pipeline both
domestically in China and outside China," he told Reuters
during a visit to San Francisco.
Alibaba said buying Auctiva would help it reach U.S.
businesses and connect them with suppliers outside of the
country.
"If we can get it right in the U.S. -- because it's
Internet savvy, e-commerce savvy -- we may get a chance to win
in other countries," Wei said.
Wei said buying Auctiva would help Alibaba target the more
than 90 percent of U.S. online merchants who continue to source
their products offline.
The acquisition, which closed on Aug. 18, is part of a $100
million investment plan for AliExpress that Alibaba announced
in April. Auctiva will operate as a new business unit and will
retain its own brand and operations.
In June, Alibaba bought Vendio Services Inc in its first
major U.S. acquisition to further its strategy of expanding its
global footprint.
Alibaba, which this month reported its strongest quarterly
profit in two years, said that the combination of both the
Auctiva and Vendio acquisitions brings more than 250,000 new
customers to Alibaba.com and related platforms, such as
aliexpress.com.
Web commerce is on the upswing in China, as buyers look for
better deals in the nation's fragmented distribution network.
Alibaba should hit 1 million paying members this year, up from
about 713,000 in the second quarter, Wei said.
The e-commerce company is the listed unit of Alibaba Group,
in which Yahoo! Inc holds a nearly 40 percent stake.
(Reporting by Alex Dobuzinskis: additional reporting by Noel
Randewich in San Francisco; Editing by Bernard Orr)


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