Decidr AI Industries (ASX:DAI) entered into a binding agreement to acquire Delaware-based enterprise AI firm Sugarwork in a scrip-for-scrip deal made through Decidr's unit, Decidr US, according to a Wednesday Australian bourse filing.
The deal is expected to be completed in the fiscal second quarter, and once completed, it will provide Decidr with an immediate operational presence in the US.
Sugarwork shareholders will receive a 4.24% ownership stake in the new Decidr US entity on completion. Upon settlement, Decidr US will also acquire around $400,000 in outstanding SAFE notes in Sugarwork. It will also acquire commercial software and intellectual property, as well as eight Sugarwork personnel.
The completion of the deal is subject to customary closing conditions, including the execution of a definitive merger implementation agreement as well as Decidr undertaking due diligence.
Its shares fell 5% in recent trading on Wednesday.