Benzinga | Jan 14, 2022 07:03AM EST

Guardforce AI Reports Expansion Into Robotics As A Service Offering, Buys Shenzhen Kewein Robot Service For 0.55 Times 5 Years Projected Average Sales For SZ, GZ, Expected To Be $10M

Guardforce AI Co., Limited ("Guardforce AI" or the "Company") (NASDAQ:GFAI)(NASDAQ:GFAIW), an integrated security solutions provider, announced today, the planned expansion of its Robotics as a Service (RaaS) offering with the proposed acquisition of Shenzhen Keweien Robot Service Co., Ltd ("SZ") and Guangzhou Kewei Robot Technology Co., Ltd ("GZ"). The proposed acquisition is scheduled to be completed by the end of February 2022.

The purchase price will be based upon a valuation that is equal to 0.55-times five years (from year 2022 to year 2026) projected average revenue for both SZ and GZ, which is estimated to be US$10,000,000 and will be paid in a mix of cash (10%) and Company restricted shares (90%) at price per share US $4.20. The acquisition is subject to, among other things, the satisfactory completion of due diligence by the Company, the entry into definitive agreements and any required third-party consents.

Lei Wang, CEO of Guardforce AI, commented, "This strategic acquisition is emblematic of Guardforce AI's growth strategy of acquiring successful companies that are leaders in their field. This development is expected to contribute to our goal of scaling operations while providing swift entry into highly evolving markets. China's surging focus in robotics development and AI applications makes this proposed acquisition a natural fit for us. As a result of this proposed acquisition, we will gain an incredibly experienced and established sales team. Upon the completion, SZ and GZ will benefit from Guardforce AI's global scale and presence, allowing them enhanced international opportunities."

SZ and GZ are based in the Greater Bay Area, one of the fastest-growing economic regions in China with both Shenzhen and Guangzhou ranking among the top 10 largest Chinese cities and in the top 30 globally. SZ and GZ derive revenues from AI robotic services which automate repetitive tasks, making them less labor intensive in the hospitality, healthcare, property management, and government sectors.