Guardforce AI Co Ltd (NASDAQ:GFAI, NASDAQ:GFAIW) has completed the acquisition of MGAI Limited, a Hong Kong-based holding company that controls a majority stake in Shenzhen Muyan Education Technology Consulting, strengthening its foothold in AI-driven healthcare services across Asia.
MGAI holds roughly 61.85% of Muyan Education, a provider of AI-supported speech therapy and rehabilitation solutions.
The deal gives Guardforce AI indirect majority control of Muyan Education and accelerates its strategy to commercialize domain-specific AI agents across scalable service industries.
The deal “marks a pivotal shift for Guardforce AI” as the company transitions its AI Agent platform into a recurring revenue engine, CEO Lei (Olivia) Wang told shareholders.
“By integrating MGAI’s specialized distribution network and proven AI tools, we are executing a disciplined approach to growth,” Wang said in a statement. “This acquisition is structured to maintain prudent capital allocation, minimizing upfront risk while aligning long-term value creation with operational execution.”
Muyan Education leverages one of China’s largest domestic databases for pediatric language development and serves over 110,000 patients through a network of more than 20,000 rehabilitation specialists. Its AI ecosystem integrates software, cloud-based SaaS tools, professional training systems, and hardware solutions to support hospitals, educational institutions, and healthcare professionals.
The acquisition positions Guardforce AI to expand cross-border services in Hong Kong, Singapore, Taiwan, and broader Southeast Asia. According to Nova Growth Analytics, China’s children’s speech and language therapy market is expected to grow at a compound annual rate of 7.5% from $1.2 billion in 2024 to $2.14 billion by 2033, with larger cities experiencing faster uptake due to improved healthcare infrastructure and early intervention awareness.
MGAI is targeting revenue of US$0.5 million in 2026, rising to US$1.5 million by 2028.
The acquisition consideration includes US$300,000 in cash and five million restricted ordinary shares of Guardforce AI, subject to performance-based vesting tied to revenue milestones through 2028. The structure is designed to limit upfront risk while aligning value creation with operational performance.
Shares of Guardforce AI rose 1.6% at Tuesday’s open.
Guardforce AI, which also operates in cash logistics, retail automation, and robotics, has been expanding its AI applications into sectors such as travel planning, positioning the company as a growing player in applied AI solutions across Asia.