Guardforce AI Co., Limited (NASDAQ: GFAI) disclosed that it has decided to grow its Robotics as a Service (RaaS) offering. The company will do so with the planned purchase of Shenzhen Keweien Robot Service Co., Ltd (SZ) and Guangzhou Kewei Robot Technology Co., Ltd (GZ). The recommended purchases are planned to be executed by the end of February 2022.
Guardforce AI disclosed that this strategic investment is exemplary of Guardforce AI's growth strategy of purchasing thriving businesses that are trendsetters in their field. This progress is likely to contribute to its goal of mounting operations while offering rapid entry into highly changing markets. The increasing focus on robotics development and AI applications in China makes this proposed purchase a good fit for the company.
Furthermore, SZ and GZ are located in the Greater Bay Area which is one of China's fastest-growing economic regions. Shenzhen and Guangzhou both have been ranking in the top ten Chinese cities and the top 30 worldwide. SZ and GZ earn profits from AI robotic services that automate repetitive work in the hotel, healthcare, property management, and government sectors, making them less labor-intensive.
Furthermore, the purchase price will be focused on pricing equal to 0.55 times the projected average revenue for both SZ and GZ over the next five years (from 2022 to 2026), which is likely to be US$10,000,000. It will be compensated in a mix of cash (10%) and Company restricted shares (90%) at a price per share of US $4.20.