Applied Digital (APLD) has entered into a non-binding agreement with EKSO Bionics Holdings (EKSO) to combine its cloud computing business, Applied Digital Cloud, with EKSO, which, once closed, will go forward as ChronoScale Corporation.
By separating the accelerated compute platform from Applied Digital’s data center ownership and development business, the Proposed Transaction will allow each business to scale independently, pursue distinct growth trajectories, and operate with greater strategic and capital flexibility, the company said.
Upon closing of the transaction, Applied Digital would own ~97% of the combined company. The Applied Digital Cloud and EKSO businesses would continue to operate upon consummation of the proposed transaction, and EKSO plans to continue to explore strategic transactions for the possible sale of all or substantially all of EKSO’s current business.
“This Proposed Transaction emanates from our previously announced initiative to evaluate and explore strategic alternatives,” commented Scott Davis, EKSO’s Chief Executive Officer. “We approached our review thoughtfully and with an aim to maximize shareholder value, and we believe the Proposed Transaction has the potential to achieve that goal and that the Proposed Transaction is in the best interest of EKSO’s stakeholders.”
