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FangDD is Powered by AI System With US$34.32 Million Assets Acquisition

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FangDD Network Group (NASDAQ:DUO) has announced a strategic US$34.32 million acquisition of AI technology assets from a British Virgin Islands company. The deal includes potential earnout payments based on revenue growth, payable in Class A ordinary shares, for calendar years 2025-2027.

The earnout structure includes 20%, 25%, and 30% ratios of revenue growth for respective years. The Company has a three-month window to secure funding and complete the transaction, with a termination option by December 29, 2025, if not closed. Share payments will be calculated based on the 30-day average closing price preceding payment dates.

FangDD Network Group (NASDAQ:DUO) ha annunciato un'acquisizione strategica di asset tecnologici di IA per 34,32 milioni di dollari statunitensi da una società miliana delle Isole Vergini Britanniche. L'accordo prevede potenziali pagamenti di earnout basati sulla crescita dei ricavi, pagabili in azioni ordinarie di Classe A, per gli anni solari 2025-2027.

La struttura dell'earnout comprende quote del 20%, 25% e 30% della crescita dei ricavi per gli anni corrispondenti. L'azienda dispone di una finestra di tre mesi per assicurare i finanziamenti e completare la transazione, con un'opzione di terminazione entro il 29 dicembre 2025 se non conclusa. I pagamenti in azioni saranno calcolati in base alla media dei prezzi di chiusura a 30 giorni che precedono le date di pagamento.

FangDD Network Group (NASDAQ:DUO) ha anunciado una adquisición estratégica de activos tecnológicos de IA por 34,32 millones de USD a favor de una empresa de las Islas Vírgenes Británicas. El acuerdo incluye posibles pagos de earnout basados en el crecimiento de ingresos, pagaderos en acciones ordinarias de Clase A, para los años calendario 2025-2027.

La estructura de earnout contempla tasas del 20%, 25% y 30% del crecimiento de ingresos para los años correspondientes. La Compañía tiene una ventana de tres meses para asegurar financiamiento y completar la transacción, con una opción de terminación para el 29 de diciembre de 2025 si no se cierra. Los pagos en acciones se calcularán con base en el precio promedio de cierre de los 30 días anteriores a las fechas de pago.

FangDD Network Group (NASDAQ:DUO)가 영국령 버진아일랜드 법인의 AI 기술 자산을 미화 3,432만 달러에 인수하는 전략적 거래를 발표했습니다. 이 거래에는 2025-2027년 달력 연도에 대해 매출 증가를 기반으로 한 인센티브 보상(earnout) 지급이 포함되며, 클래스 A 보통주로 지급됩니다.

earnout 구조는 각각 매출 증가율의 20%, 25%, 30%에 해당하는 비율로 구성됩니다. 회사는 자금을 확보하고 거래를 완료하기 위한 3개월의 창구를 가지며, 미체결 시 2025년 12월 29일까지 해지 옵션이 있습니다. 주식 지급은 지급일 직전 30일 평균 종가를 기준으로 계산됩니다.

FangDD Network Group (NASDAQ:DUO) a annoncé une acquisition stratégique d’actifs technologiques d’IA pour 34,32 millions de dollars américains auprès d’une société des Îles Vierges Britanniques. L’accord prévoit des paiements éventuels d’earnout basés sur la croissance du chiffre d’affaires, payables en actions ordinaires de Classe A, pour les années civiles 2025-2027.

La structure d’earnout prévoit des pourcentages de 20%, 25% et 30% de la croissance du chiffre d’affaires pour les années correspondantes. La société dispose d’une fenêtre de trois mois pour sécuriser les financements et finaliser la transaction, avec une option de résiliation au 29 décembre 2025 si l’opération n’est pas conclue. Les paiements en actions seront calculés sur la base de la moyenne des cours de clôture sur 30 jours précédant les dates de paiement.

FangDD Network Group (NASDAQ:DUO) hat eine strategische Übernahme von KI-Technologie-Assets im Wert von 34,32 Millionen USD von einer Gesellschaft auf den Britischen Jungferninseln angekündigt. Der Deal sieht potenzielle Earnout-Zahlungen basierend auf dem Umsatzwachstum vor, zahlbar in Class-A-Stammaktien, für die Kalenderjahre 2025-2027.

Die Earnout-Struktur umfasst Anteile von 20%, 25% und 30% des Umsatzwachstums für die jeweiligen Jahre. Das Unternehmen hat ein dreimonatiges Fenster, um Finanzierung zu sichern und die Transaktion abzuschließen, mit einer Kündigungsoption bis zum 29. Dezember 2025, falls nicht abgeschlossen. Die Aktientzahlungen werden auf Basis des 30-Tage-Durchschnitts Schlusskurses vor den Zahlungsterminen berechnet.

FangDD Network Group (NASDAQ:DUO) أعلنت عن استحواذ استراتيجي على أصول تكنولوجيا الذكاء الاصطناعي بقيمة 34.32 مليون دولار أمريكي من شركة مقرها جزر العذراء البريطانية. يشمل الصفقة مدفوعات محتملة من Earnout تعتمد على نمو الإيرادات، ستُدفع في أسهم العادية من فئة A، للسنوات التقويمية 2025-2027.

يتضمن هيكل Earnout نسب 20% و25% و30% من نمو الإيرادات للسنوات المعنية. لدى الشركة نافذة مدتها ثلاثة أشهر لتأمين التمويل وإتمام الصفقة، مع خيار إنهاء حتى 29 ديسمبر 2025 إذا لم تتم الصفقة. سيتم حساب مدفوعات الأسهم بناءً على متوسط إغلاق السعر خلال 30 يوماً السابقة لمواعيد الدفع.

FangDD Network Group (NASDAQ:DUO) 宣布以 3432 万美元从一家公司在英属维尔京群岛取得 AI 技术资产的战略收购。交易包括可能的业绩对价(earnout),基于收入增长,在 2025-2027 年的日历年度内以A类普通股支付。

业绩对价结构包括各年度收入增长的 20%、25% 和 30% 比例。公司有三个月窗口以确保融资并完成交易,如未完成则在 2025 年 12 月 29 日前有终止选项。股票支付将基于支付日前 30 天的平均收盘价来计算。

Positive
  • Strategic acquisition of AI technology assets valued at US$34.32 million
  • Performance-based earnout structure aligns seller interests with company growth
  • Flexibility in payment terms with shares based on market prices
  • Option to terminate without liability if funding isn't secured
Negative
  • Significant capital requirement of US$34.32 million within three months
  • Potential shareholder dilution from future earnout payments in shares
  • Revenue-based earnout payments could create substantial additional costs

Insights

FangDD's $34.32M AI acquisition signals strategic pivot toward tech-enabled real estate with significant earnout potential.

FangDD Network Group (Nasdaq: DUO) has announced a $34.32 million acquisition of artificial intelligence assets from an unnamed British Virgin Islands company. This move represents a significant strategic investment relative to the company's size, clearly signaling their commitment to technology-driven real estate management solutions.

The deal's structure reveals several interesting dimensions. First, the earnout mechanism ties additional compensation directly to revenue growth performance, with escalating percentages (20%, 25%, and 30%) for years 2025-2027. This creates strong incentives for successful technology integration and suggests management's confidence in the acquisition's revenue-generating potential.

The payment structure also merits attention - earnouts will be settled through equity issuance based on a 30-day VWAP, indicating potential dilution for existing shareholders if revenue growth materializes. However, the three-month fundraising window with a December 29, 2025 termination option provides FangDD operational flexibility and limits downside risk.

What's particularly noteworthy is the company's explicit framing of this acquisition as part of a "continuous strategy" toward technology-enabled real estate management. This suggests a deliberate pivot beyond traditional real estate services toward higher-margin, scalable technology solutions - potentially transforming FangDD's business model and growth trajectory in an increasingly digital real estate market.

SHENZHEN, China, Sept. 30, 2025 (GLOBE NEWSWIRE) -- Fangdd Network Group Ltd. (Nasdaq: DUO) (“FangDD” or the “Company”) today announced that it had entered into an agreement to purchase certain assets relating to artificial intelligence technology from a British Virgin Islands company. The transaction is part of the Company’s continuous strategy to expand into technology-enabled real estate management.

The purchase price for the assets is US$34,320,000. Additionally, the seller is entitled to receive an earnout payment for each calendar year ending on December 31, 2025, December 31, 2026 and December 31, 2027 at an amount equal to (a) the increase of the total revenue of the Company in a given calendar year of 2025, 2026, and 2027, as compared to the prior calendar year, multiplied by (b) the ratio of 20%, 25% and 30%, respectively. The earnout payments shall be payable by the issuance of the Company’s Class A ordinary shares at a price per share equal to the average of the closing price of one (1) Company’s Class A ordinary share for the 30 consecutive trading days immediately preceding the payment date.

The Company will have three months to raise funds for the purchase and complete the transaction. If the transaction does not close by December 29, 2025, the Company may terminate the agreement by providing written notice, without incurring liability to the seller. The purchase agreement contains representations, warranties and other provisions customary for transactions of this nature. The foregoing description of the agreement is qualified in its entirety by reference to its full text, which will be furnished to the U.S. Securities and Exchange Commission on a current report on Form 6-K.

About FangDD
Fangdd Network Group Ltd. (Nasdaq: DUO) is a customer-oriented property technology company in China, focusing on providing real estate transaction digitalization services. Through innovative use of mobile internet, cloud, big data, artificial intelligence, among others, FangDD has fundamentally revolutionized the way real estate transaction participants conduct their business through a suite of modular products and solutions powered by SaaS tools, products and technology. For more information, please visit http://ir.fangdd.com.

Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “aim,” “anticipate,” “believe,” “estimate,” “expect,” “hope,” “going forward,” “intend,” “ought to,” “plan,” “project,” “potential,” “seek,” “may,” “might,” “can,” “could,” “will,” “would,” “shall,” “should,” “is likely to” and the negative form of these words and other similar expressions. Among other things, statements that are not historical facts, including statements about the Company’s beliefs and expectations are or contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. All information provided in this press release is as of the date of this press release and is based on assumptions that the Company believes to be reasonable as of this date, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact
Ms. Linda Li
Director, Capital Markets Department
Phone: +86-0755-2699-8968
E-mail: ir@fangdd.com


FAQ

What is the value of FangDD's AI technology assets acquisition?

FangDD is acquiring AI technology assets for US$34.32 million from a British Virgin Islands company.

How will FangDD pay for the earnout payments in the AI acquisition?

Earnout payments will be made in Class A ordinary shares, with the share price calculated based on the 30-day average closing price before payment.

What are the earnout payment percentages in FangDD's AI asset acquisition?

The earnout payments are structured as 20%, 25%, and 30% of revenue growth for calendar years 2025, 2026, and 2027 respectively.

When is the deadline for FangDD to complete the AI technology acquisition?

FangDD has three months to raise funds and complete the transaction, with an option to terminate by December 29, 2025.

What happens if FangDD cannot close the AI acquisition deal by the deadline?

If the transaction doesn't close by December 29, 2025, FangDD can terminate the agreement without liability by providing written notice.
Fangdd Network Group Ltd.

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