JD.com has invested $171 million in Kingdee International Software Group Co., Ltd.
The software firm’s goal is to build the biggest big data cloud in China. The investment is 1.3 billion Hong Kong dollars, or $171 million at current exchange, which gives JD.com a 10 percent stake in Kingdee. In addition, the two firms plan to enter a strategic partnership to collaborate on providing small and medium-sized companies with solutions incorporating cloud service.
The purchase price of 4.6 Hong Kong dollars per share represents the average closing price of Kingdee’s shares for the 15 trading days prior to the signing of the agreement.
Richard Liu, founder and chief executive officer of online direct sales firm JD.com, said the company wanted to explore the integration of its best-in-class e-commerce and logistics systems with Kingdee’s leading enterprise solutions.
Shaochun Xu, chairman and ceo of Kingdee, said the investment is a milestone in the company’s history and that the investment and collaboration will leverage both companies’ large customer and user bases, accelerate Kingdee’s development of its cloud offering and expand its one-stop shop cloud services.
The investment, expected to close in the second quarter of 2015, is subject to regulatory approvals and certain closing conditions.