SHENZHEN, China - Taoping Inc. (NASDAQ:TAOP), a company specializing in smart cloud services and AI solutions currently trading near its 52-week low at $0.33, announced today its intention to acquire Shenzhen Yunti Internet of Things Co., Ltd. ("Yunti"), aiming to enhance its position in the elevator equipment and service industry. According to InvestingPro data, TAOP has demonstrated strong revenue growth of 37.49% in the last twelve months, despite its modest market capitalization of $2.19 million. The proposed acquisition, which is subject to a definitive agreement and other customary closing conditions, could significantly expand Taoping's market share and revenue streams.
Yunti, established in 2016, offers a comprehensive smart elevator solution that includes a SaaS platform, Tishibao, and Tishibang, China's first private market elevator Internet service platform. While TAOP maintains a healthy current ratio of 1.5, InvestingPro analysis indicates the company operates with a significant debt burden of $9.88 million, a factor that could influence the acquisition's financing structure. This acquisition is in line with Taoping's strategy to integrate into the smart city product market, potentially tapping into the vast Chinese elevator industry, which has seen its market size exceed 494.3 billion RMB in 2023.
The non-binding letter of intent outlines that Yunti's shareholders would exchange their equity for newly issued ordinary shares of Taoping. The final valuation and timeline for the acquisition will be determined following a third-party evaluation. Although the letter of intent does not guarantee the transaction's completion, the parties are aiming to finalize the deal within the next 12 months, pending further due diligence, board approval, and regulatory clearances.
Mr. Jianghuai Lin, Chairman and CEO of Taoping, expressed optimism about the strategic fit of Yunti within Taoping's portfolio and the potential for this transaction to unlock new opportunities and drive shareholder value. He highlighted the alignment of the acquisition with Taoping’s long-term growth strategy and its potential to enter more profitable segments of the elevator equipment industry.
The information regarding this announcement is based on a press release statement, and it should be noted that forward-looking statements involve risks and uncertainties. The actual outcome of such plans may differ materially from these projections. As of now, there is no assurance that the acquisition of Yunti by Taoping will be completed as proposed. Based on InvestingPro's Fair Value analysis, TAOP currently appears undervalued, with 14 additional ProTips available to subscribers, offering deeper insights into the company's financial health and market position.
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