The merger of G7 and E6 will bring the two Chinese platforms together as shareholders.
While they seek synergies in areas where they overlap, G7 and E6 will retain their own brands.
G7 is considering an initial public offering in Hong Kong as early as this year. China International Capital Corp., Citigroup Inc. and Morgan Stanley are advisers to the company.
JielongZhang, chief financial officer of G7, said in an interview that they decided to finish the merger before the IPO. Once the market conditions improve, we are ready to launch.
The combined investors of the merged company will each have between 7% and 10% of the firm. There are few exceptions to the rigidly separate ecosystems built by the two companies. Both giants support Bilibili Inc.
Prior to the merger, G7 had a valuation of more than $2 billion, while E6 had less. The combined company's value was not revealed.
Both G7 and E6 use artificial intelligence and internet of things technology to manage their freight andlogistics services. They use advanced driver-assistance systems to warn about bad driving and weigh cargo loads in real time to prevent theft.
More than 40,000 logistics companies are served by E6 according to an internal document. More than two million trucks and 2.3 million drivers are connected by it.
The world's longest desert highway is called the G7 Beijing–Urumqi Expressway. According to a press release at the time, it raised $200 million in a funding round.
In recent years, G7 has ventured into transaction services in areas such as settlement, insurance and equipment, which now make up 70% of the firm's revenue.
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