Fangdd Network Group Ltd. (NASDAQ: DUO) today announced that it had entered into an agreement to purchase certain patents relating to cloud computer technology in China. The transaction is part of the China-based company’s strategy to expand into technology-enabled real estate management as a supplement to its existing business.
The purchase price for the patents is US$35,000,000. Additionally, the seller is entitled to receive an earnout payment for each fiscal year ending on December 31, 2024, December 31, 2025 and December 31, 2026 at an amount equal to (a) US$15,000,000 multiplied by (b) the ratio of (i) the revenue generated by the patents during such year to (ii) RMB108,450,000. The total amount of the earnout payments for all three years combined shall not exceed US$15,000,000.
The Company will have three months to raise funds for the purchase and complete the transaction. If the transaction does not close by September 21, 2024, either party may terminate the agreement by providing written notice, without incurring liability to the other party.
Fangdd is a customer-oriented property technology company in China, focusing on providing real estate transaction digitalization services.
Through innovative use of mobile internet, cloud, big data, artificial intelligence, among others, FangDD has fundamentally revolutionized the way real estate transaction participants conduct their business through a suite of modular products and solutions powered by SaaS tools, products and technology.
DUO shares took on 1.5 cents, or 2.4%, to 62 cents.
