E-commerce company JD.com agreed to invest HK$1.3bn ($168m) in China-based cloud-based software provider Kingdee International Software yesterday, in return for a stake sized at approximately 10%.
Founded in 1993, Kingdee produces cloud-based enterprise resource planning software, providing a suite of integrated business management applications such as marketing and sales, and inventory management.
JD.com and Kingdee plan to establish a strategic partnership to supply the software to small and medium-sized enterprises by integrating it into JD.com’s e-commerce and logistics services.
The size of the stake purchase has been set at HK$4.60 per share, the average closing price of Kingdee for the 15 trading days preceding the signing. The deal is expected to close in the second quarter of 2015.
Kingdee’s early-stage investors include IDG Capital Partners, a venture capital affiliate of media and technology company International Data Group, which reportedly provided RMB 200m ($32m) in series A funding in 1998 and a further $2.4m the following year.
Kingdee reportedly also secured $8.4m from undisclosed investors in 2007.