Shares of BGM Group Ltd. (NASDAQ: BGM) experienced a significant uptick on Wednesday, climbing 8.59% in after-hours trading to reach $11.00. The surge followed the company’s announcement of a definitive acquisition agreement with YX Management Company Ltd. (“YX”), a leading smart mobility technology firm.
Acquisition Agreement Spurs Optimism
By issuing 47.5 million class A ordinary shares to YX’s current shareholders, BGM Group would fully control the firm, valued at $95.0 million, in accordance with the conditions of the agreement. It is anticipated that this calculated action would increase BGM’s digital infrastructure capabilities and broaden its range of AI-driven technologies.
Improving Digital Transformation and AI Capabilities
In order to expedite the AI-driven strategic transformation of its intelligent platform, DuXiaoBao, BGM Group intends to take use of the extensive experience of YX’s team. It is anticipated that YX’s expertise in digital infrastructure development, scalable operations, and technology commercialization would greatly accelerate BGM’s long-term growth trajectory.
The current owners of YX will hold around 32.8% of BGM’s total outstanding shares and 2.2% of its voting power when the transaction is completed, which is expected to happen by June 2025. This combination is expected to strengthen BGM’s dedication to technology leadership and corporate transformation driven by AI.
Proven Knowledge from Leaders in the Industry
The YX team is made up of highly skilled executives and IT specialists from Alibaba and Didi, two of China’s leading online giants. These experts have contributed significantly to significant initiatives including China’s national health code system, Didi’s ride-hailing services, Fliggy Travel, and Taobao Mobile. Their areas of competence include AI-driven business solutions, digital transformation, and large-scale user system architecture.
With extensive experience in scalable operations, public-private partnerships, and cross-sector resource integration, the YX team is well-positioned to drive business model optimization, enhance industry collaboration, and implement cutting-edge AI commercialization strategies for BGM Group.
Strengthening BGM’s Market Position and AI Leadership
The integration of YX’s capabilities with DuXiaoBao is expected to generate a ‘multiplier effect’ through deep industry breakthroughs, technological reinvention, and ecosystem synergy. By leveraging advanced AI commercialization and industry collaboration, BGM aims to fast-track the deployment of AI technologies and transition towards AI Agents as a core component of its business.
This strategic acquisition will not only reinforce BGM’s leadership in intelligent and digital technology innovation but also establish AI as a driving force behind sustainable growth and long-term value creation for the company.