Guardforce AI Announces Definitive Agreements to Acquire Eight Companies in China
NEW YORK, NY, May 24, 2022 (GLOBE NEWSWIRE) -- Guardforce AI Co., Limited (“Guardforce AI” or the “Company”) (NASDAQ:GFAI)(NASDAQ:GFAIW), an integrated security solutions provider, announced today it has entered into two definitive agreements to acquire a total of eight companies in China.
The first agreement is to acquire Beijing Wanjia Security System Limited, an integrated security provider with 25 years of experience from Shenzhen Yeantec Co., Limited (“Yeantec”) for approximately US $8.4 million. The acquisition is expected to close in June 2022, subject to customary closing conditions.
The second agreement is to acquire an additional seven companies from Shenzhen Kewei Robot Technology Co., Limited (“Kewei”), valued at approximately US $21.6 million, which acquisition is expected to close in the third quarter of 2022. The seven companies include:
The seven companies to be acquired from Kewei are established providers of Robotics-as-a-Service (RaaS) solutions in their respective markets in China. During the past several years, these companies have expanded their customer base across various industries, such as hospitality, healthcare, education, malls, and property management.
The total deal value of both acquisitions of US $30 million is based on one-time projected average revenues for the eight companies over the next 5 years. The deal will be paid in a combination of cash (10%) and restricted ordinary shares of the Company (90%) at the previously agreed price of U.S. $2.00 per share.
Terence Yap, Chairman of Guardforce AI, further noted, “These acquisitions are expected to be truly transformaive, as they not only strengthen our foothold in major cities and regions across China, but also provide us new capabilities and a diverse customer base across a wide range of industries. We look forward to leveraging these newly acquired capabilities across our global platform and we expect to benefit from meaningful economies of scale.”
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. China represents a significant growth opportunity, as it is among the largest and fastest growing economies in the world. Importantly, these acquisitions bring established management and sales teams with proven track records in their local markets.”
About Guardforce AI Co., Ltd.
Guardforce AI Co., Ltd. (NASDAQ:GFAI)(NASDAQ:GFAIW) is a global integrated security solutions provider that is focused on developing robotic solutions and information security services that complement its well-established secured logistics business. With more than 40 years of professional experience, Guardforce AI is a trusted brand name that protects and transports high-value assets belonging to public and private sector organizations. Guardforce AI develops and provides innovative technologies and services that enhance safety and protection. For more information, visit www.guardforceai.com.
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Guardforce AI Corporate Communications