FangDD buys AI tech assets for $34.3mln, with potential earnouts.

• FangDD buys AI tech assets from British Virgin Islands company for $34.3mln. • Transaction part of expansion into tech-enabled real estate management. • Earnout payments tied to revenue growth from 2025-2027. • Payments to be made in Class A ordinary shares.

Fangdd Network Group Ltd. (Nasdaq: DUO), a leading property technology company in China, has announced a significant acquisition of AI technology assets from a British Virgin Islands company. The transaction, valued at $34.3 million, is part of FangDD's strategic expansion into technology-enabled real estate management.

The purchase agreement includes earnout payments tied to revenue growth over the next three years. The earnout payments will be calculated based on the increase in total revenue from 2025 to 2027, with ratios of 20%, 25%, and 30% for each respective year. These payments will be made in Class A ordinary shares, with the price per share determined by the average closing price of the shares over the 30 trading days preceding the payment date.

FangDD has three months to complete the transaction, which must be finalized by December 29, 2025. The company has the option to terminate the agreement without liability to the seller if the transaction does not close by the deadline.

This acquisition aligns with FangDD's mission to revolutionize the real estate transaction process through innovative technology solutions. The company's suite of modular products and solutions, powered by AI, cloud, and big data, has already significantly transformed the industry. By acquiring these AI technology assets, FangDD aims to further enhance its offerings and maintain its competitive edge.