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Orrick Represents JD.com in Merger of JD Daojia and Dada Nexus


April.18.2016

Orrick represented JD.com, Inc. (“JD”; NASDAQ: JD), the largest online direct sales company in China, on the merger of its O2O business, JD Daojia, and Dada Nexus Limited (“Dada”), China’s largest crowdsourcing delivery platform.
 
The deal is expected to close in the second quarter of 2016, subject to certain closing conditions. Being the largest shareholder of the new entity, JD.com will receive approximately 47.4% of the new company’s equity in exchange for various resource support and US$200 million in cash.
 
After merger, Dada/JD Daojia will continue to operate two core businesses, including the crowdsourcing delivery platform providing delivery services to retailers, service providers and O2O enterprises in China at a lower cost, thanks to the enhanced efficiencies and integrated extensive crowdsourcing network; and the O2O supermarket platform offering the fastest premium shopping experience by leveraging the expanded delivery network with a focus on the location-based mobile commerce sector.
 
JD Daojia has been a leader in China’s O2O supermarket industry since its launch in April 2015 covering over three million customers in 13 cities via its location-based app. Dada Nexus, founded in 2014, is the largest crowdsourcing delivery platform in China with a network covering 37 key cities in China.
 
The Orrick team is led by Shanghai-based Corporate partner Jie (Jeffrey) Sun, along with Shanghai-based corporate associate Lu (Echo) Wang and Chen Lu.