Kinetic Group set to acquire AI software company for boosting enterprise digital transformation
Kinetic Group (KNIT), a frontrunner in the technology holdings domain, is on the brink of bolstering its service offerings through the strategic acquisition of a successful artificial intelligence (AI) software company, according to a recently signed memorandum of understanding.
This expansion is poised to propel Kinetic Group’s endeavors in the realm of enterprise digital transformation, leveraging high-precision AI predictive software.
The group’s target acquisition promises a well-rounded AI solutions portfolio to its enterprise clientele, designed to optimize decision-making processes, reduce operational risks, and boost productivity. With a suite of unique offerings such as Digital Twins, Smart Assets, AI predictive analytics, and Metaverse engagement, the company is pioneering the delivery of AI business services in both the public and private sectors.
Estimations indicate a promising Year 1 EBITDA of $3.2 million following the acquisition, further solidifying the group’s financial standing. The soon-to-be-acquired company boasts a robust client base, catering to the world’s most prominent oil, gas, industrial, and transportation entities.
The move is well-timed given that digital transformation service sales are projected to skyrocket to a whopping $6.8 trillion by 2027. Additionally, the global economy is expected to see a substantial $15.7 trillion influx by 2030, courtesy of AI’s contribution.
To facilitate this venture, Kinetic Group has partnered with CIM Securities LLC, which will act as the lead placement agent in a fundraising endeavor aiming at US$3 million. The raise is structured as an 8% PIK Dividend Series A Convertible Participating Preferred, featuring a 1.5x liquidation preference and priced at $1.00 per preferred share.
The funds raised will be allocated to international sales promotion and the roll-out of a subscription-based revenue model.
Ana María Méndez — Kinetic Group Founder and Chairwoman said: “We are excited with the acquisition of a leading company in the AI space, offering an entire suite of business digital transformation services. We believe AI solutions will transform the near-term business landscape.
“Our AI services empower businesses to make optimal decisions based on improved data and analytics. KNIT expects to be a leading AI services company in the years ahead.”