Kingdee International Software Group Company Limited (Stock Code: 00268.HK) and JD.com, Inc., the largest online direct sales firm in China, jointly announced today that they have signed a definitive agreement, in which JD.com will put in  HK$1.3 billion (around US$170 million) in cash in return for about 10 percent stake in Kingdee.

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Reuters reported that JD.com and Kingdee plan to penetrate a strategic collaboration, which they will partner on offering small and medium-sized companies with incorporated ERP solutions by a cloud service. The cost per share will be HK$4.60, representing the standard closing price of Kingdee's stocks for 15 trading days upon engaging in the agreement.

According to Forbes, Kingdee's Chairman and Chief Executive Officer Shaochun Xu said that they are happy to partner with JD.com, which has an established market leading-propriety logistics and e-commerce technologies. It is said that this agreement will be another milestone for Kingdee and they will make the opportunity a leverage to both firm's user and consumer bases. It is said that this will also move the development of Kingdee's cloud services and expansion a one-stop shop.

According to reports, partnership with JD.com will let Kingdee to take their business solutions to the upper level by incorporating JD.com's logistics and e-commerce vertical solutions. This is a well-planned partnership that will let them provide comprehensive cloud-based ERP solutions and be a leader in the business mobile internet market.

JD.com CEO Richard Liu said that Kingdee is one of the ideal partners to take advantage of as they are one of the leading providers of business solutions in China, with a big SME consumer base and international reputation for excellence. He added that since JD.com is an advanced logistic IT and e-commerce solutions, the company is happy to explore the merger of first class e-commerce and logistic system with Kingdee's advanced ERP solutions, and make an incorporated package to an enterprise cloud solution to better serve the fast growing need in China's business solutions industry.

TagsJD.com, Kingdee, JD.com store, JD.com investments, Business Updates, JD.com strategies, cloud services, cloud services, ERP solutions