Chinese alternative investment house Hillhouse Capital has agreed to make a US$250 million investment in Magento Commerce, a cloud omnichannel e-commerce solution provider that was previously a division of eBay.
The investment will be used to fuel the company's worldwide growth, with an emphasis on Asia. The investment follows Magento's move in 2015 to become an independent company from eBay with the backing of European private equity firm Permira.
The company did not disclose how large a stake Hillhouse will hold after the completion of the transaction. It said Permira will continue to own a majority stake.
"We see tremendous growth opportunities for Magento globally and specifically in Asia. We are excited to be partnering with such an exceptional management team to continue to build and grow the business over the long-term," said Zhang Lei, chairman and CEO of Hillhouse.
The deal is one of the largest for Hillhouse in terms of size. The firm has mostly participated in venture and private equity investments in the range of tens of millions.
Magento's cloud-based open platform is supported by a global ecosystem of solution integrators and technology partners to enable over 250,000 clients who collectively generate more than US$50 billion in annual merchandise volume, according to the company.
The proceeds will be used on the company's expansion strategy, worldwide acceleration of sales and marketing, new product innovation and future acquisitions, the company said.