Guardforce AI Co. Ltd (NASDAQ:GFAI) said it has completed the previously announced acquisition of the Chinese robot business of Shenzhen Kewei Robot Technology Company Ltd.
The deal includes the transfer of certain equipment, clients in the sales pipeline, related sales channels and staff, as well as rights to the permanent use of patents.
Customers for the acquired business span a range of industries, such as restaurants, hotels, and office buildings, including Fortune 500 companies.
Guardforce AI said the acquired rights to patents are expected to further enhance the company’s capabilities in Robot as a Service (RaaS) development, which complement the company’s advanced AI capabilities.
READ: Guardforce AI lands two long-term contracts with established clients for secured logistics services
In a statement, Olivia Wang, chairwoman and chief executive officer of Guardforce AI, commented: “As a growing RaaS solution provider, the newly acquired robot assets and rights to patents are expected to further strengthen our capabilities in developing robotic solutions for our customers. Moreover, with an expanded global footprint and growing AI resources, we look forward to further expanding our RaaS solutions such as AIoT robot advertising, AI-based support for hotels, and other uses of AI services, especially within the tourism industry where we are witnessing rapid growth in demand.”
The definitive agreement to buy Kewei's robot business was signed on December 21, 2022, and the total purchase price for the acquisition was US$2.1 million.
The acquisition was originally expected to be paid fully in the form of 10,500,000 restricted ordinary shares of the company based on $0.20 per share. However, with the approval of Guardforce AI’s special shareholder meeting on January 31 for a reverse split of a 1:40 ratio, the acquisition will be paid in 262,500 restricted ordinary shares of the company based on $8.00 per share on a split-adjusted basis.
Guardforce AI is a global security solutions provider, building on its legacy secured logistic business while expanding and transforming into an integrated AI and RaaS business. With more than 40 years of professional experience and a strong customer foundation, Guardforce AI is developing RaaS solutions that improve operational efficiency, quickly establishing its presence in the Asia Pacific region, while expanding globally.
Contact the author at jon.hopkins@proactiveinvestors.com