- Guardforce AI Co Ltd (NASDAQ: GFAI) (NASDAQ: GFAIW) entered into two definitive agreements to acquire eight companies in China for $30 million.
- The deal will be paid in a combination of cash (10%) and restricted ordinary shares of GFAI (90%) at an agreed price of $2/share.
- As per the first agreement, GFAI will acquire Beijing Wanjia Security System Limited, an integrated security provider with 25 years of experience, from Shenzhen Yeantec Co., Limited for $8.4 million. The acquisition is expected to close in June 2022.
- The second agreement is to acquire seven additional companies from Shenzhen Kewei Robot Technology Co., Limited for ~$21.6 million. The acquisition is expected to close in 3Q22.
- The seven companies from Kewei are established providers of Robotics-as-a-Service (RaaS) solutions in their respective markets in China.
- The total deal value is based on one-time projected average revenues for the eight companies over the next 5 years.
- Lei Wang, CEO of Guardforce AI, commented, "Through these acquisitions, we look forward to accelerating the commercial rollout of our RaaS business initiatives and expanding our integrated security capabilities in China."
- GFAI held cash and equivalents of $15.85 million as of December 31, 2021.
- Price Action: GFAI shares are trading higher by 40.9% at $0.88 on the last check Tuesday.
Read at Benzinga