Australian IT firm Appen gets merger bid from US-based Innodata (updated)

Innodata

12/03/2024 08:11

(Adds details on deal in paragraph 2-5)
       March 12 (Reuters) - Australia's software firm Appen
 APX.AX  said on Tuesday it received a proposal from U.S.-based
digital data solutions firm Innodata  INOD.O  for a potential
merger of the two companies in an all-stock deal.
    Appen said the proposal offers A$0.70 worth of Innodata
shares per share of the company, though it did not diclose any
other details on the deal. 
    Appen and Innodata did not immediately reply to Reuters'
requests for confirmation of the deal's value.
    Appen said it was seeking to understand the potential value
that the proposed bid implies for its shareholders, adding, it
had agreed to a limited exchange of confidential information on
a non-exclusive basis.
    Innodata is one of the several parties who have proposed
transactions via strategic investments, or sale of part or all
of Appen's businesses, the Australian company said. 
    The sale comes as Appen, one of the world's largest
artificial intelligence training providers, suffered a blow from
difficult operating environemnt and weak global demand, forcing
the company to undertake cost-saving initiatives in recent
months.
    

 (Reporting by Poonam Behura; Editing by Rashmi Aich)
 ((Poonam.Behura@thomsonreuters.com;))