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Massimo Group (NASDAQ: MAMO), a leading U.S. manufacturer and distributor of powersports vehicles and electric mobility solutions, announced its intent to acquire 100% of FST Development Company Limited, an AI technology company specializing in intelligent hardware and system-level solutions, to advance its AI-powered mobility and health technology strategy.
The Letter of Intent (LOI) values FST Development Company Limited at a pre-money equity valuation between US$38 million and US$50 million. Massimo Group intends to acquire all of FST's equity interests for a total purchase consideration ranging from approximately US$27 million to US$35 million. This consideration may be paid through Massimo common stock, cash, or a combination. Any equity issued will be subject to a six-month contractual lock-up period, with release contingent upon achieving post-acquisition performance milestones and successful integration of FST's operations, as determined by Massimo Group's CEO.
Massimo Group identifies two significant global trends: the rise of AI-enabled outdoor mobility and next-generation digital health robotics. The Company believes that intelligence, connectivity, and data-driven systems are the future of outdoor equipment manufacturing, complemented by increasing demand for proactive, personalized, and scalable health solutions due to aging populations. By acquiring FST, Massimo plans to merge its manufacturing scale, brand, and distribution network with FST's comprehensive AI capabilities, including intelligent control platforms, health-technology modules, and proprietary AI middleware, to build a unified intelligent ecosystem across mobility, health, and advanced system intelligence.
Upon completion of the acquisition, the combined entity is projected to integrate FST's AI-driven control platforms, health-technology modules, and proprietary middleware directly into Massimo's upcoming UTV, ATV, and marine product lines. This strategic integration is expected to lead to several benefits, including reduced product development cycles, lower comprehensive research and development (R&D) and system integration costs, and an accelerated time-to-market for intelligent, connected, and differentiated products. Furthermore, the acquisition will enable Massimo Group to enter the high-growth AI health robotics market, leveraging FST's existing expertise in medical-grade hardware and predictive health algorithms.
David Shan, CEO of Massimo Group, emphasized that this transaction represents a strategic transformation, uniting Massimo's legacy of robust vehicles with FST's advanced AI-driven systems and software intelligence. The objective is to enhance outdoor experiences by making them safer, improving health monitoring through proactive solutions, and increasing the accessibility of advanced technology, all while maintaining disciplined execution and fostering long-term value creation. FST's CEO added that becoming part of Massimo would provide a powerful platform to expand their technology from individual modules to fully integrated ecosystems, leveraging Massimo's operational strength and global reach for faster and larger-scale deployment of their innovations.
The Letter of Intent establishes a 60-day exclusivity period during which both parties will conduct confirmatory due diligence and negotiate the definitive transaction documents. The goal is to execute final agreements by late March 2026. This timeline is subject to various customary closing conditions, including obtaining approval from the respective boards of directors of both companies, securing all necessary regulatory approvals, and completing satisfactory financial, legal, and operational due diligence by Massimo Group.
It is important to note that the Letter of Intent is a non-binding agreement. This means that neither Massimo Group nor FST Development Company Limited is obligated to complete the proposed transaction. There can be no assurance that definitive agreements will be successfully negotiated and executed, or that the acquisition will ultimately be completed as outlined in the LOI.
FST Development Company Limited is a technology company dedicated to developing intelligent hardware and comprehensive system-level solutions. The company specializes in providing deeply integrated hardware-software modules and offers ODM/OEM (Original Design Manufacturer/Original Equipment Manufacturer) services, particularly for applications in outdoor power equipment and the emerging field of AI health robotics.
Massimo Group (NASDAQ: MAMO) is a U.S.-based company that manufactures and distributes a range of powersports vehicles, including utility terrain vehicles (UTVs), electric mobility solutions, and associated accessories. The company serves its customer base through an established nationwide dealer network, providing diverse products for various outdoor and recreational needs.
This press release contains forward-looking statements regarding the proposed acquisition, its anticipated timeline, expected benefits, and potential risks, as defined by federal securities laws. These statements, identified by words like "expects," "intends," "plans," and "anticipates," are based on current expectations and are not guarantees of future performance. They are subject to various risks and uncertainties, including the non-binding nature of the LOI, potential failure to reach definitive agreements, unforeseen due diligence findings, challenges in obtaining approvals, integration difficulties, market adoption rates, supply chain issues, and cybersecurity risks. Massimo Group explicitly states it undertakes no obligation to update these forward-looking statements unless legally required.