Alibaba to Acquire Mapping Company AutoNavi for $1.5 Billion

Mapping and navigation firm AutoNavi has agreed to a $1.5 billion acquisition by China's largest e-commerce company, Alibaba Group Holding Ltd.

Alibaba will pay $5.25 a share to AutoNavi stockholders, or $21 per American depositary share. That is a 27 percent premium over the company's closing price on Feb. 7, the last day of trading before its talks with Alibaba became public.

Alibaba already has a 28 percent stake in AutoNavi. Acquiring the company positions Alibaba as a more robust competitor with rivals Tencent Holdings Ltd and Baidu Inc.