Xylo Technologies Signs LOI to Acquire a Leading AI Technology Company Based in Germany
Xylo Technologies (Nasdaq: XYLO) has signed a letter of intent (LOI) to acquire a leading AI technology company based in Germany. This acquisition aims to expand Xylo's portfolio into advanced AI technologies such as predictive maintenance and condition monitoring. The target company has been a European leader for over a decade, providing AI and machine learning solutions to various global industries including aerospace, aviation, transportation, real estate, and security. Xylo will make a down payment of 1.5 million Euros and initially acquire 51% of the target company's shares, with the remaining 49% contingent on the company's 2024 EBITDA results. This strategic move was facilitated by Xylo's newly appointed senior advisor, an expert in AI with a distinguished career in both academia and industry.
- Xylo expands its portfolio into high-growth AI technologies.
- Strategic acquisition targets a European leader in AI and machine learning.
- Target company serves multiple global industries: aerospace, aviation, transportation, real estate, and security.
- Initial acquisition of 51% with a down payment of 1.5 million Euros.
- Potential for acquiring the remaining 49% based on strong financial results.
- Senior advisor with extensive AI expertise involved in the acquisition.
- The final price of the transaction is dependent on uncertain 2024 EBITDA results.
- Initial 1.5 million Euros payment represents a financial outlay with potential risks.
- Uncertainty regarding integration of new technologies and potential market acceptance.
Xylo Technologies' acquisition of a leading German AI technology company represents a significant alignment with the current market trends focusing on AI and machine learning. This acquisition could potentially enhance Xylo’s capabilities and expand its portfolio into high-demand areas such as predictive maintenance and condition monitoring. The
This acquisition underscores Xylo Technologies' strategic move into sectors that promise significant growth. The target company’s expertise in AI for industries like aerospace, transportation and real estate aligns well with current market demands for smarter, more efficient solutions. The synergy between Xylo and the target company's existing client base, including multiple leading global entities, could potentially open new revenue streams. However, the integration process will be critical. There's also a notable trend towards environmental sustainability in tech and the target's environmentally-friendly solutions fit well with broader industry movements. Investors should keep an eye on how well Xylo can leverage these new technologies to propel its market position and enhance shareholder value over time.
The acquisition by Xylo Technologies represents a strategic expansion into AI-driven technologies, specifically in predictive maintenance and condition monitoring. These technologies are becoming increasingly important as industries look to reduce downtime and enhance operational efficiency. The target company's decade-long experience in merging AI with advanced hardware positions it as a valuable asset. This acquisition could significantly elevate Xylo's technological capabilities, making their offerings more robust and appealing. The key to success will be how well Xylo can integrate and scale these advanced technologies across its platform. Also, the involvement of a senior advisor with deep industry and academic insights could add substantial value in this integration phase.
TEL AVIV, Israel, May 21, 2024 (GLOBE NEWSWIRE) -- Xylo Technologies Ltd. (Nasdaq: XYLO) (“Xylo” or the “Company”), a technology-based company engaged in advanced innovative technologies, announces today it signed a letter of intent (“LOI”) for the strategic acquisition of a leading German company specializing in developing artificial intelligence (“AI”) predictive maintenance and condition monitoring technologies as well as other AI tools and technologies for various industries (the “Target Company”). This potential acquisition could mark the expansion of Xylo’s portfolio to advanced AI technologies that are being integrated in various market segments and industries.
The Target Company, a European leader for over 10 years in merging AI, machine learning algorithms with advanced hardware solutions, turning existing processes into more efficient and environmentally friendly. The Target Company is already providing services to multiple leading global entities in sectors including aerospace, aviation, transportation, real estate, security, and more, demonstrating its various areas of ability and expertise. Its unique approach of making manufacturing equipment smarter and more connected aligns with Xylo’s strategy of growing and developing high-growth potential technologies.
Pursuant to the LOI, subject to the closing, Xylo will pay a down payment of 1.5 million Euros and will initially hold
Xylo used the knowledge and experience of its newly appointed senior advisor for the dynamic realm of AI to identify this potential strategic acquisition. With an illustrious career spanning academia and industry, the newly appointed senior advisor brings unparalleled expertise and insight to Xylo.
About Xylo
Based in Israel, Xylo Technologies Ltd. (Nasdaq: XYLO) is a technologies company that is focused on innovative growth partnerships, mainly in advanced medical solutions, digital commerce, and electric vehicle markets. Xylo’ affiliations in the medical solutions arena include the ownership in Polyrizon Ltd. Xylo’s affiliates in digital commerce include Gix Internet Ltd., and Eventer Technologies Ltd. In the electric vehicle market, Charging Robotics, Inc., Charging Robotics, Ltd., and Revoltz Ltd. are also part of the Company’s portfolio of technology solution providers. Other affiliations of the Company include ParaZero Technologies Ltd., Zig Miami 54 LLC.
Xylo is traded on the Nasdaq Capital Market. To learn more about Xylo’s advanced technologies, please visit https://ir.xylotech.ai/
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Because such statements deal with future events and are based on Xylo’ current expectations, they are subject to various risks and uncertainties, and actual results, performance or achievements of Xylo could differ materially from those described in or implied by the statements in this press release.
The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed in any filings with the SEC. Except as otherwise required by law, Xylo undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Xylo is not responsible for the contents of third-party websites.
Company Contact:
Tali Dinar
Chief Financial Officer
ir@xylotech.ai
Investor Relations Contact:
Michal Efraty
Investor Relations,
michal@efraty.com
FAQ
What did Xylo Technologies announce on May 21, 2024?
What is the significance of Xylo's acquisition?
How much will Xylo pay initially for the acquisition?
What percentage of the target company will Xylo initially acquire?
What are the conditions for acquiring the remaining 49% of the target company?
Which industries does the target company serve?
