KE Holdings Inc. Announces Acquisition of Shengdu, Accelerating Expansion of Home Renovation Business
KE Holdings Inc. (“Beike” or the “Company”, NYSE: BEKE), announced that the Company has entered into a definitive agreement with Shengdu Home Renovation Co., Ltd. (“Shengdu”), pursuant to which the Company agreed to acquire 100% equity interests in Shengdu from its existing shareholders, for a total consideration capped at RMB 8 billion consisting of cash and equity, subject to a staggered acquisition arrangement and customary closing conditions, including regulatory approvals. The transaction is expected to close in the first half of 2022 and CICC acts as the Exclusive Financial Advisor to Beike.
About Beike & Shengdu
Beike is a leading integrated online and offline platform for housing transactions and services in China, providing a full range of services from used and new home sales to home rentals, home renovation, real estate financial solutions, and other services. The Company has more than 20 years of operating history since the inception of Lianjia by Mr. ZUO Hui in 2001. As of March 31, 2021, Beike had over 48,000 stores and over 528,000 agents on its platform in China.
Founded in 2002 and headquartered in Hangzhou, Shengdu is a full-service home renovation service provider in China. With over 19 years of operating experiences, Shengdu has become a renowned home renovation service provider in East China with a service network covering seven provinces and municipalities, providing quality one-stop home renovation service for a large customer base.
This transaction will help Beike accelerate expansion of its home renovation business, and deepen the standardization in home renovation products, services and professionals through the 20 years of operating experience accumulated by Lianjia and Beike. The transaction will also promote the improvement of the quality and efficiency of this industry, and thus provide more joyful living for the housing customers in China.
CICC, as the Excluded Financial Advisor in the transaction, worked closely with the Beike and other consultants to efficiently conduct the transaction. It has become another iconic M&A deal of CICC, and a benchmark practice for CICC to facilitate real estate technology platform to realize strategic upgrading.