Waterdrop Inc. (NYSE:WDH) entered into definitive agreement to acquire Shenzhen Cunzhen Qiushi Technology Co., Ltd. for CNY 360 million on June 9, 2023. Pursuant to the transaction documents, Waterdrop will acquire up to 100% of the equity interest of Cunzhen Qiushi for an aggregate consideration of CNY 360 million (subject to certain price adjustment mechanisms) through multiple closings. Upon completion of the proposed acquisition, Cunzhen Qiushi will become a wholly owned subsidiary of Waterdrop.

The transaction is subject to certain closing conditions. Waterdrop will acquire 56% of the equity interest of Cunzhen Qiushi at the first closing, which is expected to take place in June 2023. Waterdrop will acquire 4% of the equity interest of Cunzhen Qiushi at the second closing, which is expected to take place within six months after the first closing.

The remaining 40% equity interest of Cunzhen Qiushi will be acquired in three years.