BGM and AIX Announce Acquisition Agreement

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BGM Group announced that it has acquired the core assetts of AIX, an artificial intelligence platform company.¹ The transaction brings all of AIX’s subsidiaries under BGM’s umbrella, including RONS Intelligent Technology Co. and Shenzhen Xinbao Investment Management Co. The acquisition is expected to close by the end of 2024.

In a press release BGM CEO Xin Chen said, “AIX's efforts in digital innovation and intelligent transformation have yielded remarkable outcomes. Their accumulated technology and expertise will serve as a crucial reference for our own transformation in the pharmaceutical and healthcare sectors. This collaboration will not only bolster BGM's technological capabilities but also expedite our strategic development, enabling us to deliver more efficient and intelligent solutions to the global market. This partnership represents a mutually beneficial opportunity, and I am optimistic about our future together."

AIX CEO Hu Yinan commented in the same press release, “Intelligent technology is the future of the insurance sector. AIX's intelligent platform has already exhibited significant potential within the industry. However, broader advancement requires an open industry perspective and ecological support. Partnering with BGM will allow our platform to reach a wider user base and unlock greater potential for AI technology beyond the insurance realm. Furthermore, this collaboration aligns with national elderly care policies and promotes the growth of the silver economy. By extending our intelligent capabilities from insurance into the pharmaceutical and healthcare sectors, we aim to facilitate industry transformation through technology and propel AIX's growth. AIX will maintain its role as the primary user of the intelligent platform, actively investing resources to maximize its technological capabilities. We are confident that this collaboration will create new opportunities for both AIX and the intelligent platform, enhancing value for our customers, industry partners, and shareholders."

AIX is focused on utilizing AI in insurance agencies and claims services. In a separate press release,² AIX announced the details of the restructuring, which it described as not being a simple sale-transaction.

According to the press release, the plan has three main components. The first is to drive performance growth for BGM by using the Duxiaobao AI insurance platform. The second is to improve BGM’s market valuation, which AIX says is undervalued at $52 million. The third is to focus on business synergy between BGM’s prominent placement in the pharmaceutical industry and AIX’s placement in the insurance industry.

As part of the transaction, AIX exchanged its Duxiaobao AI insurance platform along with its data for 72% of BGM Group’s shares, making it the majority shareholder. AIX’s core assets are valued at $152 million.

Sources

1. BGM Group Ltd Pioneers Innovation in AI Technology, Fostering Holistic Integration of Healthcare and Insurtech. BGM Group Ltd. November 29, 2024. https://www.prnewswire.com/news-releases/bgm-group-ltd-pioneers-innovation-in-ai-and-intel-technology-fostering-holistic-integration-of-healthcare-and-insurtech-302318792.html
2. AIX Inc. (NASDAQ:AIFU): Reshaping AI Insurance and the Healthcare Industry--A Promising Future Ahead? AIX Inc. November 29, 2024. https://www.prnewswire.com/news-releases/aix-inc-nasdaqaifu-reshaping-ai-insurance-and-the-healthcare-industrya-promising-future-ahead-302318841.html