Fangdd Network to purchase certain assets relating to AI tech for $34.3M

Fangdd Network (DUO) 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 $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 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 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 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.