[Credit: reAlpha]

reAlpha acquires IT consulting group to grow tech offerings

US: AI-powered real estate technology and investment company, reAlpha, has signed a letter of intent [LOI] to purchase IT consulting company United Software Group [USG].

The prospective transaction will enable reAlpha to propel the digitisation of the real estate industry through the development and deployment of innovative AI solutions.

Under the terms of the LOI, reAlpha said that it intends to acquire USG through a combination of common stock and cash, some of which cash payments are subject to performance-based earn-out measures. The acquisition is anticipated to close in the first quarter of 2024.

Founded in 2002, USG evolved from a startup to its current position as a global IT consulting services and workforce management company with diversified revenue streams. USG’s specialised consulting services include data engineering, backend architecture and product development.

Upon closing, the acquisition will add more than 2,000 full-time and contract workers to reAlpha’s workforce.

Giri Devanur, founder and CEO of reAlpha, said: “Our planned acquisition and integration of USG is a strategic leap forward for reAlpha, serving as a catalyst to further enhance our engineering and AI capabilities, while amplifying our talent pool in this competitive AI-industry landscape. We believe this synergistic, revenue-producing transaction further propels us towards a future where innovation is not just a goal, but a pivotal new standard in our industry.”

USG founder and CEO, Anju Vallabhaneni, said: “Our journey began as a small private company 21 years ago to a global player on pace to generate over $80 million in gross revenue in 2023. Today, we take an exciting step in our journey to partner with a Nasdaq-listed public company.

“By joining forces with reAlpha, we believe we are well-positioned to innovate the real estate industry in a way that resonates on a global scale,” he added.

It is expected that USG will become a wholly-owned subsidiary of reAlpha and that Vallabhaneni will continue serving as its CEO.

It also represents reAlpha’s latest acquisition after buying technology firms Naamche and Rhove in December and April respectively. The company also completed its direct listing on the Nasdaq in October and currently trades under the ticker symbol ‘AIRE’.

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