UiPath Acquires Peak AI to Boost Growth

# uipath # RPA # peak.ai

In a bold move to capture a larger share of the burgeoning enterprise AI market, UiPath, a leader in automation, has acquired Peak.ai, a Manchester-based startup specializing in decision-making AI. This acquisition was announced alongside UiPath's latest quarterly earnings report, which painted a challenging outlook but offered this acquisition as a potential bright spot. Peak.ai focuses on AI solutions for pricing and inventory management, primarily serving the retail and manufacturing sectors. UiPath's founder and CEO, Daniel Dines, emphasized that the acquisition aligns with their strategy to expand AI and automation services tailored to specific industries. Although the financial details of the acquisition remain undisclosed, sources close to the matter revealed to TechCrunch that Peak.ai was not actively seeking a buyer and was not nearing the end of its financial runway. The deal was completed in cash, and Robert Anton, an investor from Oxx, expressed his satisfaction with the outcome. Peak.ai's most recent funding round occurred in 2021, when SoftBank invested $75 million, valuing the company at approximately $267 million post-money. The startup had raised a total of $121 million from investors including Octopus, MMC, and OurCrowd. Despite economic challenges, Peak reported a revenue increase of 17% to just under £9 million ($11.6 million) for the year ending December 31, 2023, according to its filings with Companies House in the UK. UiPath, on the other hand, reported a modest 5% revenue increase to $424 million in its fourth quarter, surpassing net profit expectations but lowering its full-year revenue forecast for FY 2026 to between $1.525 billion and $1.530 billion due to global economic uncertainties. This adjustment led to an 18% drop in UiPath's NYSE-listed shares during pre-market trading. The company, which has a current market cap of about $6.5 billion, had previously laid off 10% of its workforce in July 2024 after revising its fiscal year 2025 expectations downward. The acquisition of Peak.ai could be a strategic move for UiPath to boost its revenue growth. The companies had existing partnerships, and the acquisition is expected to facilitate cross-selling opportunities and capture more of Peak's revenue stream. UiPath initially made its mark in robotic process automation (RPA), automating routine business tasks. Its rapid growth as a startup drew significant attention, with one investor noting, "I've never seen an enterprise company grow this fast." This growth led to a $35 billion valuation when UiPath was still private. While UiPath's RPA was not initially AI-driven, the company later began integrating AI into its offerings. Peak.ai, having started early in the AI assistant space, faced challenges in selling its technology when AI was perceived as a risky investment. However, by 2023, the perception had shifted, and Peak.ai saw increased interest, particularly from the U.S. manufacturing sector. With UiPath, now effectively a U.S. company, Peak.ai gains a stronger foothold in this market. Peak.ai's founders, Richard Potter, David Leitch, and Atul Sharma, expressed optimism about the acquisition, stating, "The ability to seamlessly integrate decision intelligence with automation presents an unprecedented opportunity to redefine how businesses operate." Daniel Dines echoed this sentiment, saying, "With the acquisition of Peak, we are accelerating our mission to strengthen our vertical AI solutions strategy. When combined with the UiPath platform, Peak’s exceptional purpose-built AI applications will enhance our ability to provide solutions that optimize industry-specific use cases and deliver incredible value to customers." As the details of the deal price are still being sought, any additional information would be greatly appreciated.

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