- BGM Group (NASDAQ: BGM) is acquiring Xingdao Intelligent and YD Network for RMB800 million.
- The acquisition will be financed through 37,123,142 newly issued Class A shares at $3.0 per share.
- Post-acquisition, shareholders of the acquired companies will hold 15.6% of BGM's total share capital.
BGM Group (BGM, Financial) has announced definitive agreements to acquire two companies, Xingdao Intelligent and YD Network, for a combined valuation of RMB800 million. The acquisition will be executed through an issuance of 37,123,142 Class A ordinary shares priced at $3.00 each, amounting to approximately $111.4 million. This move will lead to a 15.6% dilution for existing shareholders of BGM upon completion.
Both acquisitions are strategically aligned to enhance BGM's capabilities in AI-driven solutions and sector-specific applications. Xingdao Intelligent, a leader in embodied service robotics based in China, brings a portfolio of over 300 patents covering a range of industries including restaurant services, retail, building management, and healthcare. This acquisition is expected to significantly bolster BGM's hardware and software integration capabilities.
Simultaneously, YD Network, known for its advancements in AI-powered stock trading solutions, will provide BGM with a foothold in the fintech sector. Their expertise in quantitative trading algorithms will expand BGM's current AI applications into the financial markets, offering services like stock selection and risk management.
The acquisitions are projected to close by June 2025, facilitating BGM's "multi-agent AI productivity platform" strategy. This comprehensive approach aims to develop a more robust ecosystem across various industries, enhancing BGM’s global presence with scalable AI solutions.
