reAlpha Tech Corp. Announces Letter of Intent for Acquisition of United Software Group

reAlpha Tech Corp. (Nasdaq: AIRE), a real estate technology firm specializing in the development and application of real estate-focused artificial intelligence (“AI”) for enhanced efficiency and sustainability, has disclosed the signing of a Letter of Intent (LOI) to acquire United Software Group (“USG”), a globally-operating, Ohio-based IT consulting company. The proposed acquisition aligns with reAlpha’s strategic vision to advance real estate digitization through innovative AI solutions.

Under the LOI terms, reAlpha plans to acquire USG through a combination of common stock and cash, with certain cash payments subject to performance-based earn-out measures. The acquisition is expected to conclude in Q1 2024, contingent upon the negotiation of a definitive agreement, foreign regulatory approval, customary closing conditions, and potential stockholder approval as per Nasdaq Listing Rules.

Founded in 2002, USG has evolved into a global IT consulting and workforce management firm with diverse revenue streams, offering specialized services such as data engineering and product development. Led by founder and CEO Anju Vallabhaneni, USG is anticipated to contribute significantly to reAlpha’s long-term goal of becoming a leader in AI solutions for real estate. The acquisition is poised to add over 2,000 full-time and contract workers to reAlpha’s workforce, fostering synergies within the existing technology portfolio and generating immediate revenue for reAlpha.

Upon completion, USG is expected to operate as a wholly-owned subsidiary of reAlpha, with Mr. Vallabhaneni continuing in his role as CEO. For detailed LOI terms, refer to the Company’s Form 10-Q filed with the U.S. Securities and Exchange Commission on December 18, 2023.

About reAlpha Tech Corp. reAlpha Tech Corp. (Nasdaq: AIRE) is a real estate technology company dedicated to developing and commercializing AI for real estate, aiming to drive efficiency, sustainability, and growth. Focused on short-term rental properties, reAlpha plans to democratize access to this asset class by offering technologies for individual and commercial use.

About United Software Group United Software Group (USG) is a global IT consulting company founded in 2002, headquartered in Dublin, Ohio. Operating across six countries, including the U.S., Mexico, Canada, U.K., Ireland, and India, USG has provided IT solutions, product development, and data engineering for over 21 years. Recognized by Inc. 5000 as one of America’s “Fastest Growing Private Companies,” USG serves diverse industries, including finance, insurance, manufacturing, healthcare, retail, life sciences, automotive, telecom, and infrastructure.