Massimo Group is backing out of its acquisition of FST Development Company after deciding to pursue its own security-technological capabilities rather than buy them.

The utility-focused powersports and mobility-equipment maker on Wednesday said that it terminated its previously-announced deal and that it is abandoning the stock-based deal structure the company had been considering.

FST is a technology company specializing in intelligent hardware and artificial intelligence-driven system-level solutions. In early February, Massimo struck a deal to buy FST in a $27-million deal intended to add AI software to its vehicles, and launch Massimo into the business of AI health technology.

The decision follows a review of strategic priorities and capital allocation, during which Massimo advanced several in-house security technologies including intelligent patrol systems, autonomous patrol vehicle platforms, drone-assisted security technologies, AI-powered monitoring platforms.

"These developments have strengthened management's confidence in the company's internal technology roadmap and reduced the need to pursue external acquisitions to obtain similar capabilities," the company said.

In support of the decision, Massimo's controlling shareholder is providing up to $4 million to accelerate the internal development programs that are replacing the acquisition.

The new money is expected to support initiatives such as product development, testing optimization and pilot programs, it said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

June 24, 2026 09:06 ET (13:06 GMT)

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