(Yicai Global) July 6 -- The operator of Chinese online real estate agency Beike Zhaofang will purchase all of Shengdu Home Renovation's equity for no more than CNY8 billion (USD1.2 billion) to expand its residential remodeling services.

The deal that involves cash and equity is expected to close by June 2022, Beijing-based KE Holdings said in a statement yesterday.

The acquisition should help Beike strengthen its housing services to satisfy the evolving needs of its clients, said Chairman Peng Yongdong.

Founded in 2001, Beike's business involves second-hand and new home sales but it also launched a home renovation brand Beiwoo in 2019.

Established in 2002, Hangzhou-based Shengdu offers one-stop renovation services via its network that focuses on eastern China. In 2020, the firm's revenue climbed 27 percent to CNY4 billion, according to public data. By 2024, it expects to achieve over CNY10 billion (USD1.5 billion) in annual contract value.

Editor: Emmi Laine, Xiao Yi