(Yicai Global) May 29 -- Unisplendour's stock price rose after the Chinese provider of information technology solutions said it plans to pay USD3.5 billion to acquire the shares of H3C Technologies that it does not already own to better compete with rivals.

Unisplendour [SHE: 000938] closed 3.7 percent higher at CNY30.47 (USD4.31) a share today, after jumping by as much as 8.2 percent in the morning trading session.

To fund the acquisition, Unisplendour intends to raise CNY12 billion (USD1.7 billion) through a private placement of shares, the Beijing-based firm said on May 26. Tibet Ziguang Communication Investment will remain its controlling shareholder after the placement, Unisplendour added..

Unisplendour had CNY11.7 billion (USD1.7 billion) of funds at the end of last quarter, while its short-term borrowings were CNY4.9 billion (USD693 million), and non-current liabilities due within a year stood at CNY527 million (USD74.5 million).

Unisplendour acquired 51 percent of H3C in May 2016. By buying the rest of the digital solutions provider, Unisplendour aims to optimize its business and enhance its layout in the digital economy.

H3C’s earnings have grown stably since Unispendour’s first equity purchase, with revenue soaring to nearly CNY75 billion last year from CNY13 billion in 2016 and net profit surging to more than CNY2 billion from CNY150 million (USD21.2 million).

Net profit at Unispendour rose 0.5 percent to CNY2.2 billion in the 12 months ended Dec. 31 from the year before, while operating income rose 9.5 percent to CNY74.1 billion.

Editors: Shi Yi, Martin Kadiev