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Luokung Technology to Acquire Chinese Artificial Intelligence Company
Tuesday 14 May 2019

14 May 2019 - Chinese spatial-temporal big-data technology company Luokung Technology Corp has signed a stock purchase agreement to acquire 67.36% of Beijing BotBrain AI Technology Ltd and Botbrain AI Ltd., the company said.

Under the deal, the company will invest RMB 20m to BotBrain and will issue 804,162 ordinary shares at USD 7 per share to the former institution investors of BotBrain to obtain 67.36%.

The 32.64% share equity of BotBrain will be remained by Xueyu Lu, the founder and CEO of BotBrain, along with BotBrain's core team members.

After the acquisition, Lu will continue as CEO of BotBrain AI.

BotBrain was established in January 2016, and it has been become an advanced provider for intelligent content solutions in China.

Its artificial intelligence algorithms and technology are applied in Chinese semantic analysis, intelligent voice interaction, knowledge graph learning, personalized contents recommendation and other related big data analysis.

There are two independent business brands in BotBrain. "Max" content brain is an AI content management and operation platform, which provides AI solutions based on its content services. "BotBrain Zhiyu" is an AI knowledge learning assistant system.

BotBrain has been serving many well-known enterprises based in China, including People's Daily Overseas, ChinaNews, Kaishu Story, Baby Tree, Baofeng, Bank of China, State Grid, FAW, CreditEase, Facebank and Kingsoft Cloud etc., which involve various industries including media, mobile internet, banking, automobile, financial services, retails and energy.

BotBrain has started the cooperation with the company in technology supports prior the acquisition, it provides intelligent geographic information algorithms service for us, and Its technology of semantic analysis, knowledge graph and personalised contents recommendation significantly supports the LBS service of Luokung.

After the acquisition, BotBrain will put more investment in the research of intelligent spatial temporal data algorithm and application.

BotBrain will provide critical intelligent technologies and application experiences to support our LBS business, personalised full-vector map, and enable us to improve the services we provide to mobile Internet industry and users.

Therefore, the company's LBS business platform is able to gain a greater competitive advantage.

The founder and CEO of BotBrain, Lu Xueyu processes more than 40 patents relating to the contents intelligence service algorithms.

Lu has more than 13 years experiences in big data and AI industry, he has had an in-depth comprehension and long-term practice in big data, AI and personalised recommendation and Lu is one of the earliest practitioners in this field in China.

Lu worked in Tencent, Alibaba Youku and Xiaomi and was responsible for the construction and management of big data and artificial intelligence teams, gained many successful implementation experiences for the establishment of big data and recommendation systems.

In 2006 in Tencent, Lu took the lead in using artificial intelligence technology in virus discovery, effectively helped Tencent to protect nearly 1bn QQ users' account information security.

During the time in Xiaomi, Lu was the technical director and was in charge of Xiaomi's data workshop, he was also responsible for the Xiaomi ecological big data business.

Luokung Technology is a spatial-temporal big-data processing technology company and a leading interactive location-based services company in China.

The core brands of the company are "Luokuang" and "SuperEngine." "Luokuang" is a mobile application to provide B2C services and "SuperEngine" provides B2B and B2G services in connection with Spatial-Temporal big data.
Date Published: 14/05/2019
Target: Beijing BotBrain AI Technology Ltd and Botbrain AI Ltd/67.36% stake
Country: China
Deal Size: 25.6m (USD)
Sector: Computer Software
Type: Corporate acquisition
Financing: Cash and Stock
Status: Agreed
Buyer: Luokung Technology Corp
Terms of the deal were not disclosed