Inpixon merges with Kins Technology SPAC in $69 million deal
The company is also mobilizing 20% of its staff as part of a cost-cutting move
Kind Technology to acquire Inpixon
Kind Technology, a Special Purpose Acquisition Company, or SPAC, is acquiring Inpixon’s enterprise applications business, which includes its workplace experience technologies, indoor mapping, events platform augmented reality and related business solutions.
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INPX shareholders will receive KINZ shares worth approximately $69 million as part of the deal.
The companies expect to complete the transaction this year and provide Inpixon’s CXapp business with more working capital.
The companies have not set a record date for shareholders.
Inpixon CEO Nadir Ali said on Monday: “We have been working on several strategic transactions for some time and believe this transaction will unlock significant shareholder value. »
Ali believes the deal will benefit shareholders of both companies.
INPX shares have fallen 80% over the past year.
Most corporate shareholders are retail investors and only 5.9% are institutions.
INPX sports a bearish trend Fintel Institutional Accumulation Score of 26.90 and ranks in the bottom fifth for institutional takeovers out of the 29,013 companies examined.
Despite the low levels of accumulation, INPX has 40 institutions that own 9.6 million shares of the company. Some of these institutions include; Geode Capital Management, Renaissance Technologies LLC and Millennium Management LLC.
Last week, Inpixon also announced that it dismiss 20% of its employees to reduce Functionnary costs.
Inpixon lost $19.9 million in the second quarter, including an impairment charge of $7.6 million.
Excluding fees and other one-time costs, the company recorded negative adjusted EBITDA of $9.9 million, compared to $6.3 million a year ago.
The company’s 37% revenue growth to $4.7 million was not enough to offset rising operating costs.
The company ended the quarter with $65.8 million in cash on the balance sheet, well above its market capitalization of around 21 million.
Article by Ben Ward, Fintel