Chinese online direct sales group has entered into a deal to acquire a stake in Kingdee International Software Group Company.

The deal sees invest HK$1.3bn (US$170m) in cash in consideration for an approximate 10% stake in Kingdee. Additionally, the two companies will join forces on providing small and medium-sized enterprises with integrated ERP solutions through a cloud service.

The purchase price will be HK$4.60 per share, representing the average closing price of Kingdee's shares for the 15 trading days prior to the signing of the agreement.

"We are delighted to be partnering with, which has developed industry-leading proprietary e-commerce and logistics technologies," said Shaochun Xu, Kingdee CEO. "This is a key milestone in Kingdee's development history. We will take this opportunity to leverage both companies' large customer and user bases, accelerate the development of Kingdee's cloud offering and expand our one-stop shop cloud services.

"Collaboration with will further allow Kingdee to take our enterprise solutions to the next level by integrating's e-commerce and logistics vertical solutions. This planned strategic partnership will position us to provide leading cloud-based ERP solutions and continue to lead the enterprise mobile Internet market for years to come. "

The transaction is expected to close in the second quarter of 2015, subject to customary approvals and closing conditions.