Luda Technology Group will acquire a 55% stake in Asia AI Data Centre & Quantum Technology Company for US$935,000; the deal marks a shift for the NYSE American-listed firm, traditionally focused on stainless steel and coal trading. Through this acquisition, Luda Technology officially enters computing infrastructure operations management, aiming to connect China’s AI ecosystem with international markets. The consideration includes US$335,000 in newly issued shares of Luda Technology, indicating a stock-swap component to the transaction.
Luda Technology’s 55% Stake Acquisition of AI Data Quant Tech
This price point, while substantial, raises questions about the current valuation of AI Data Quant Tech or the specific assets driving the deal, particularly given the capital-intensive nature of establishing quantum computing capabilities. The total consideration includes US$600,000 in cash, with the remaining US$335,000 satisfied through the issuance of newly created Luda Technology shares, indicating a stock-swap component designed to align the interests of both firms and potentially dilute existing Luda Technology shareholders.
Of the cash portion, US$400,000 has already been transferred, with the remaining US$200,000 due within three months of the agreement’s execution. Luda Technology Group’s move represents a significant departure for the NYSE American-listed firm, historically focused on the manufacture and trade of stainless and carbon steel flanges, fittings and coal, the company says. This acquisition officially positions the company within computing infrastructure operations management, a sector demanding specialized expertise and substantial capital investment.
The strategic rationale centers on using Hong Kong’s position as a bridge between China’s emerging AI ecosystem and international markets, a point emphasized by Luda Technology’s CEO, Mr. Ma Biu. “Hong Kong is a ‘super connector’ between Mainland China’s cost-efficient AI ecosystem and international markets,” he said. The company intends to capitalize on this geographic advantage by connecting Huazhi Future, a Nasdaq-listed intelligent computing firm, with overseas channels, particularly within the ASEAN region.
Beyond the direct acquisition, Luda Technology simultaneously signed a strategic memorandum of understanding (MOU) with Huazhi Future to explore collaborative opportunities in three key areas: overseas computing power export, liquid cooling technology and financial cooperation, according to the company. This MOU outlines plans to establish a joint Liquid Cooling Technology Laboratory and Research Institute, focusing on advanced heat dissipation systems for containerized data centers.
Luda Technology will contribute its two decades of precision metal manufacturing experience, specifically its expertise in producing the piping and fluid-transfer systems critical for liquid cooling, while Huazhi Future will provide application scenarios and testing environments. This integration demonstrates a deliberate effort to combine Luda Technology’s existing manufacturing capabilities with the specialized demands of high-performance computing, the firm reports.
The company’s broader strategy, as articulated by Mr. Ma Biu, is to provide affordable, high-performance AI computing infrastructure and advanced cooling solutions globally, while simultaneously continuing to innovate within its core steel manufacturing business. The acquisition of AI Data Quant Tech, with its expertise in data center infrastructure operations and management, is intended to be a foundational element in realizing this vision.
The deal also involved a review and approval process due to a related party transaction. Ms. Liu Liangping, the sole director of AI Data Quant Tech, also serves as Luda Technology’s Chief Operating Officer and previously held a director position, while her spouse is a director, CEO and ultimate beneficial owner of Luda Technology.
The company’s audit committee vetted and approved the acquisition under NYSE American guidelines and its related person transaction policy. This many-sided approach, acquisition, strategic partnership and integration of existing expertise, suggests a long-term commitment to establishing a significant presence in the competitive landscape of AI computing infrastructure.
Execution of the AI Data Quant Tech acquisition and signing a strategic MOU with Huazhi Future mark two important steps in moving our data center strategy from planning into execution.
See today’s quantum computing news on Quantum Zeitgeist for the latest breakthroughs in qubits, hardware, algorithms, and industry deals.
