reAlpha Tech Corp., a real estate technology company focused on developing, utilizing and commercializing real estate-focused artificial intelligence to drive efficiency, sustainability and growth, announced today that it has signed a letter of intent to acquire United Software Group, an Ohio-based privately-held, multi-industry information technology consulting company operating on a global scale (the “Acquisition”). Acquiring USG will serve to advance reAlpha’s strategy to propel the digitization of the real estate industry through the development and deployment of innovative AI solutions.

Under the terms of the LOI, reAlpha intends to acquire USG through a combination of common stock and cash, some of which cash payments are subject to performance-based earn-out measures. The Acquisition is anticipated to close in the first quarter of 2024 and closing will be subject to the negotiation of the definitive agreement to be entered into in connection with the Acquisition, foreign regulatory approval, other customary closing conditions and potential stockholder approval to the extent required by the Nasdaq Listing Rules.

Founded in 2002, USG evolved from a start-up to its current position as a global IT consulting services and workforce management company with diversified revenue streams. USG’s specialized consulting services include data engineering, backend architecture and product development, which we believe will be highly complementary to, and will facilitate reAlpha’s long-term plan to become a leader in the creation, implementation and deployment of AI solutions for real estate. USG is led by its founder and CEO Anju Vallabhaneni, an experienced entrepreneur in the technology industry, and, upon closing, the Acquisition will add more than 2,000 full-time and contract workers to reAlpha’s workforce. reAlpha believes that the Acquisition will provide significant synergetic contributions to our existing portfolio of technologies, in addition to providing immediate contribution to reAlpha’s revenues.

“Our planned acquisition and integration of USG is a strategic leap forward for reAlpha, serving as a catalyst to further enhance our engineering and AI capabilities, while amplifying our talent pool in this competitive AI-industry landscape,” says Giri Devanur, reAlpha’s founder and CEO. “We believe this synergistic, revenue-producing transaction further propels us towards a future where innovation is not just a goal, but a pivotal new standard in our industry.”

Upon the close of the acquisition, it is expected that USG will become a wholly-owned subsidiary of reAlpha with Vallabhaneni to continue serving as USG’s CEO. For additional details concerning the terms of the LOI, please reference the Company’s quarterly report on Form 10-Q filed with the U.S. Securities and Exchange Commission on Dec. 18, 2023.