Genius Group Completes FatBrain AI Merger, 150% Increase in 2023 Combined Proforma Revenue Guidance
- Genius Group and FatBrain AI merge to create an AI-powered Education and Acceleration group.
- The merger is expected to increase Genius Group's 2023 pro forma revenue guidance by approximately 150% to $76 million to $80 million.
- Genius Group anticipates an increase in pro forma net profit guidance to $7 million to $9 million.
- The combined companies aim to power Sovereign AI ecosystems for entrepreneurs, enterprises, governments, and students through AI education and enablement.
- The 'Genius City' model will support over five million students and a fifteen thousand partner marketplace.
- The merger will enable the companies to offer AI-driven solutions across various sectors to SMEs, enterprises, and government institutions.
- The newly merged group plans to launch the Genius City model in Dubai, Abu Dhabi, and Singapore to educate and impact one million students, entrepreneurs, and enterprises within each city.
- The merger will combine Genius Group's AI-driven Edtech platform with FatBrain AI's AI-driven peer intelligence, sector-specific SaaS solutions to create a full AI Education and Acceleration ecosystem.
- FatBrain AI's CEO, Peter Ritz, and Chairman, Michael Moe, will join Genius Group's Board.
- None.
Insights
The merger between Genius Group and FatBrain AI represents a strategic consolidation within the edtech and AI sectors, aiming to capitalize on the growing demand for AI education and peer intelligence solutions. This move is particularly significant as it highlights a trend towards creating more comprehensive, end-to-end solutions that cater to a wide array of stakeholders, from students to governments.
From a market perspective, the anticipated revenue and net profit increases for Genius Group post-merger suggest confidence in the synergy between the companies' offerings. The focus on 'Genius City' models aligns with global initiatives to invest in AI and technology-driven education, indicating a potential for substantial market growth. However, investors should monitor the execution of the merger's integration plan and the actual market adoption of the 'Genius City' concept.
The merger's impact on the stock market will depend on the combined entity's ability to meet or exceed the projected financial targets and to scale the 'Genius City' model effectively. The educational technology sector is competitive and the success of this merger will hinge on the differentiated value provided through their combined AI-driven platforms.
An analysis of the financial implications of the merger reveals an ambitious increase in pro forma revenue guidance by approximately 150% and net profit guidance by $4 million. Such projections are aggressive and suggest that the management has high expectations for cost synergies and revenue growth post-merger. However, investors should approach these figures with caution, as the actual financial performance will depend on the successful integration of FatBrain AI's assets and customer base into Genius Group's operations.
Furthermore, the all-stock transaction structure indicates that Genius Group is leveraging its stock as currency for growth, which is a common strategy in the tech industry. This can be beneficial for preserving cash but also dilutes existing shareholders. The long-term value creation for shareholders will therefore be contingent upon the merged entity's ability to innovate and capture significant market share in the burgeoning AI education sector.
The 'Genius City' model presents an innovative approach to integrating AI and edtech to foster upskilling and economic growth. The merger's focus on creating AI ecosystems for education and acceleration is timely, as there is a global push towards developing smart cities and sovereign AI. The commitment to educate and impact a large number of students and professionals aligns with the increasing need for AI literacy in the workforce.
However, the success of this initiative will largely depend on the quality and relevance of the educational content, the efficacy of the AI-driven platforms in delivering personalized learning experiences and the ability to form meaningful partnerships with governments and enterprises. While the initiative is promising, the actual impact on the education sector and the broader economy will be measured by the adoption rates and the tangible outcomes for the learners and institutions involved.
SINGAPORE, March 14, 2024 (GLOBE NEWSWIRE) -- Genius Group Limited (NYSE American: GNS) (“Genius Group” or the “Company”), a leading entrepreneur edtech and education group, and FatBrain AI (“FatBrain AI”) an AI SaaS and Solutions company (OTCMKTS:LZGI) today announced completion of their merger to form an AI-powered Education and Acceleration group to power Sovereign AI ecosystems of tomorrow for entrepreneurs, enterprises, governments and students through AI education and enablement.
Following NYSE approval, Genius Group completed the merger, acquiring FatBrain AI in an all-stock transaction. Under the terms of the agreement, Genius Group has acquired the AI software assets, customer relationships and specific operations of FatBrain AI, with an anticipated increase of approximately
Genius Group and FatBrain AI together enable a ‘Genius City’ exponential growth cycle with their AI edtech platform supporting over five million students and a fifteen thousand partner marketplace joining peer intelligence and AI solutions across energy, finance, logistics, manufacture, retail, tech and telco sectors delivered to SMEs, enterprises and government institutions.
Roger Hamilton, CEO of Genius Group said “The demand for AI and entrepreneurial skills continues to grow. Countries and cities around the world are seeing these skills as increasingly vital to be competitive in the age of AI. The desire for Sovereign AI institutions where countries, cities and companies can own their own data and build their own AI platform calls for localized education platforms. While ‘Smart Cities’ have been defined by the use of smart technology, our ‘Genius City’ model calls for upskilled humans alongside smart technologies and puts personalized education and peer intelligence at the heart of driving growth.”
“UAE just committed
Peter B. Ritz, co-founder of FatBrain AI said “Our FatBrain AI investors and global team are excited to become part of the Genius Group. As the need for upskilling and training in this age of AI accelerates, and we’re looking forward to an exciting future ahead where our combined companies will enable us to meet the massive growing, global demand for Sovereign AI and peer intelligence solutions.”
“We look forward to the partnerships and initiatives formed as part of our Genius City growth plans. We’re excited to build critical assets driving the economies of tomorrow: the global Genius City peer intelligence systems boosted by our entrepreneur education platform to share insights, talent and opportunities between countries and cities, accelerating their progress in harnessing exponential technology to become economic and social leaders of the future.”
Following a successful visit to Dubai and Abu Dhabi in February by Genius Group’s Roger Hamilton together with FatBrain AI Board Members, Peter Ritz and Michael Moe, the newly merged group will launch their Genius City model in April 2024 with the Dubai Genius City and Abu Dhabi Genius City, followed by the Singapore Genius City, each with a target to educate and impact one million students, entrepreneurs and enterprises within each city within a year of launch.
The merger enables the companies to combine Genius Group’s AI-driven Edtech platform with FatBrain AI’s AI-driven peer intelligence, sector-specific SaaS solutions to SMEs (Companies with 500 or less employees), larger enterprises and governments, creating a full ‘Genius City’ end-to-end AI Education and Acceleration ecosystem, with four global revenue drivers focused at B2S (Students), B2C (Entrepreneurs), B2B (Enterprises) and B2G (Governments):
- B2B – For Students: Government and company funded AI camps and accelerators together with a scholarship fund for young students at high school and university level to learn future-focused skills, both virtual and in-person, personalized with their Genie AI. The Genius Curriculum progress through to full undergraduate and master’s degree programs integrating with personalized gamified and Genius Metaversity, with AI-driven learning libraries shared across participating students and institutions.
- B2C – For Entrepreneurs: Full suite of upskilling courses in AI, exponential technologies and entrepreneurship, delivered by certified trainers and partners globally, ranging from AI Microschools to three-month in-house accelerators, linked with the Genius Scholarship to connect student apprentices with entrepreneurs and enterprises, and linked to FatBrain AI’s SAAS solutions to share peer intelligence, industry trends and leaderboards.
- B2B – For Enterprises: Enterprise portal and suite of upskilling courses for companies to upskill their workforce in AI, exponential technologies and entrepreneurship, delivered in-house, in-person and via the GeniusU Edtech platform, giving companies AI-powered insights into their workforce’s personalized talent development progress and access to FatBrain AI’s SAAS solutions to increase peer intelligence and productivity.
- B2C – For Governments: A full AI education ecosystem providing participating cities, regions and national governments with a full AI-driven, lifelong learning system for future-focused education and upskilling, with direct benefits in increased skills, competitiveness and shared intelligence within the rapidly changing Age of AI and Exponential Technologies.
With the closing of the merger, FatBrain AI’s CEO, Peter Ritz, and Chairman, Michael Moe, will join Genius Group’s Board. Peter B. Ritz is a co-founder of FatBrain AI and earlier exec chair of Observable Networks (acquired by Cisco), and Michael Moe is Founder and CEO of GSV Ventures, an early investor in Edtech companies including Coursera, Chegg, Course Hero, Masterclass, and Guild Education.
About Genius Group
Genius Group is a leading entrepreneur Edtech and education group, with a mission to disrupt the current education model with a student-centered, life-long learning curriculum that prepares students with the leadership, entrepreneurial and life skills to succeed. Through its learning platform, GeniusU, the Genius Group has a member base of 5.4 million users in 200 countries, ranging from early age to 100.
For more information, please visit https://www.geniusgroup.net/
About FatBrain AI
FatBrain AI provides powerful and easy-to-use AI solutions to empower the enterprise stars of tomorrow to grow, innovate, and drive the majority of the global economy. FatBrain's AI 2.0 technologies and advanced data services transform continuous learning, narrative reasoning, large language models, cloud and blockchain technologies into auditable, explainable and easy to integrate AI solutions. FatBrain's subscriptions allow all companies to deploy its advanced AI solutions quickly, easily, and securely behind their firewalls or via cloud. FatBrain's global delivery includes 600+ team across design, development centers in the US, UK, India and Kazakh Republic.
For more information, please visit https://FatBrain.ai/
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