FangDD Network Group Ltd. (Nasdaq: DUO), a China-based proptech company, has announced that it has entered into an agreement to purchase certain AI assets from a company based in the British Virgin Islands.
The purchase price is $34.3 million. Additionally, the seller is entitled to receive an earnout payment for each calendar year between 2025 and 2027 at an amount equal to the increase in the total revenue of FangDD in a given calendar year, as compared to the prior calendar year, multiplied by 20%, 25% and 30%, respectively.
The earnout payments shall be payable by the issuance of Class A ordinary shares in FangDD at a price per share equal to the average of the closing price of one Class A ordinary share for the 30 consecutive trading days immediately preceding the payment date.
FangDD has three months to raise the necessary funds and complete the transaction. If it does not close by December 29, FangDD may terminate the agreement by providing written notice, without incurring liability to the seller.
The transaction is part of FangDD’s strategy to expand into technology-enabled real estate management, the company said.
