SkyAI, the London-listed artificial intelligence firm, confirmed on Tuesday that it has received a preliminary takeover proposal from Forward Industries, a diversified industrial group. The news sent shares in SkyAI soaring by as much as 18% in early trading, before settling at 245p per share, valuing the company at approximately £1.2 billion.
The proposal, which remains subject to due diligence and regulatory approvals, is understood to be a cash-and-shares offer. Forward Industries, which has been expanding its technology portfolio in recent years, sees SkyAI's machine learning and data analytics capabilities as a strategic fit for its automation and smart manufacturing divisions.
Analysts at Peel Hunt described the bid as 'opportunistic but logical', noting that SkyAI's proprietary AI algorithms are increasingly used in sectors such as logistics and healthcare. 'Forward Industries is betting on the long-term growth of AI integration in traditional industries, and SkyAI's technology could give them a significant edge,' said analyst Sarah Mitchell.
The move comes amid a broader wave of consolidation in the UK AI sector. Last month, data firm Cortex Analytics was acquired by a US private equity group, and several smaller AI start-ups have received unsolicited approaches. For UK investors and pension holders, the deal underscores the value embedded in British tech companies, though it also raises questions about foreign ownership of strategically important technologies.
SkyAI's board said it is evaluating the proposal and has advised shareholders to take no action for now. The Takeover Panel has been notified, and a formal announcement is expected within the next 28 days. If successful, the acquisition would mark one of the largest AI takeovers in London this year.
Source: UKPulse Media / Company announcements