- Guardforce AI (NASDAQ:GFAI) stock is rising on acquisition news.
- The company is acquiring eight Chinese robotics companies.
- The total value of the deals is $30 million.
Source: Phonlamai Photo / Shutterstock.com
Guardforce AI (NASDAQ:GFAI) stock is on the rise Tuesday after announcing its intentions to acquire eight companies.
Guardforce AI reveals that it has signed two definitive agreements that will see it bring eight Chinese companies into its fold. The first of these is with Beijing Wanjia Security System Limited. This is an integrated security provider that GFAI is paying $8.4 million. That deal will close in June of this year.
The second agreement is with Shenzhen Kewei Robot Technology Co., Limited. This will have it spending a total of $21.6 million to acquire seven companies. The deal is expected to close in the third quarter of 2022.
Guardforce AI notes that the seven companies it’s acquiring from Kewei are Robotics-as-a-Service (RaaS) solution providers in China. It mentions that these operate in the hospitality, healthcare, education, malls, and property management industries.
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Guardforce AI is using a mix of cash and stock to complete its acquisitions of these companies. This will see it paying 10% in cash and the remaining 90% in stock at a previously agreed on price of $2 per share.
GFAI stock is seeing heavy trading today alongside the acquisition news. This has more than 32 million shares of the stock changing hands. That’s a jump from its daily average trading volume of about 12.8 million shares.
GFAI stock is up 36%as of Tuesday afternoon.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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