Alibaba is reportedly close to an agreement to acquire ZTE’s software subsidiary, in a move that will boost the e-commerce giant’s relationship with operators and bolster its cloud business.

According to Bloomberg, Alibaba, which has been in negotiations for months to buy ZTEsoft Technology, could pay between CNY2 billion ($294 million) and CNY3 billion for the division.

The unit provides software support and other services to operators around the world, and will help Alibaba with its ambitions to compete with Amazon and Microsoft in cloud computing.

According to its website, ZTEsoft serves more than 550 million subscribers through more than 120 operators across Europe, Africa and Asia, with major customers including Orange and KPN.

ZTE, meanwhile, could use the cash injection to help it with a $1.2 billion fine imposed recently by the US for violating trade sanctions. The Chinese vendor is also investing heavily in 5G research and development, as it looks to establish a lead over rivals Huawei, Ericsson and Nokia.