Didi Chuxing, a China-based ride-sharing firm, struck a deal to acquire the assets of Uber China, including its brand, business operations and data. In exchange, Uber will receive a 5.89% stake in the combined company with preferred equity interest which is equal to a 17.7% stake in Didi Chuxing. In addition, Uber will also give Didi Chuxing a minority interest in itself and Ubder founder Travis Kalanick will join the Didi Chuxing board.

Uber had ranked as the largest human cloud firm in the world, according to a report by Staffing Industry Analysts, and Didi Chuxing had ranked as the second largest.

Bloomberg reported that Didi Chuxing will also invest in $1 billion in Uber.

The two companies had been fierce competitors in China. Didi Chuxing last year announced a $100 million investment in Uber competitor Lyft, which ranks as the sixth-largest human cloud firm.

“Over 15 million drivers and 300 million registered users have joined Didi’s open, sharing-based ecosystem that connects people, cars and lifestyles,” Didi Chuxing President Jean Liu said in a statement. “With the addition of the strong talents and experience of the Uber China team, Didi Chuxing will be even better-positioned to serve the Chinese people. Didi Chuxing will also continue to expand its international strategy.”

Kalanick wrote in a blog post that Uber China handled 150 million trips a month.

“However, as an entrepreneur, I’ve learned that being successful is about listening to your head as well as following your heart,” Kalanick wrote. “Uber and Didi Chuxing are investing billions of dollars in China and both companies have yet to turn a profit there. Getting to profitability is the only way to build a sustainable business that can best serve Chinese riders, drivers and cities over the long term.”