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Guardforce AI Announces Definitive Agreements to Acquire Eight Companies in China
Acquisitions Expand Robotics-as-a-Service and Integrated Security Capabilities NEW YORK, NY, May 24, 2022 (GLOBE NEWSWIRE) -- Guardforce AI Co., Limited
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[{"type":"text","content":"Acquisitions Expand Robotics-as-a-Service and Integrated Security Capabilities\nNEW 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: Beijing Keweian Robot Technology Limited, based in BeijingShanghai Nanxiao Kewei Intelligent Technology Limited, based in ShanghaiTianjin Kewei Robot Technology Limited, based in TianjinChongqing Kewei Robot Technology Limited, based in ChongqingGuangxi Kewei Robot Technology Limited, based in Nanning, Guangxi ProvinceFuzhou Kewei Robot Technology Limited, based in Fuzhou, Fujian ProvinceHainan Kewei Robot Technology Limited, based in Haikou, Hainan Province 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 transformative, 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 for...