UiPath, a leading player in the automation space, has announced the acquisition of Peak.ai, a startup based in Manchester that builds "decision-making" AI solutions for functions like pricing and inventory management. The acquisition was revealed as part of UiPath's quarterly earnings report, with terms of the deal remaining undisclosed. However, sources close to the matter indicate that Peak.ai was not seeking a buyer and had a significant cash runway, suggesting a strategic move by UiPath to bolster its capabilities in the AI space.

Peak.ai, which last raised $75 million from investors including SoftBank in 2021, had a post-money valuation of around $267 million. The company's latest accounts filed with Companies House in the U.K. show revenues of £9 million ($11.6 million) for the year ending December 31, 2023, representing a 17% increase from the previous year. Despite facing strong economic headwinds, Peak.ai's growth demonstrates the demand for its AI solutions in the retail and manufacturing sectors.

UiPath's acquisition of Peak.ai comes at a time when the company is facing its own challenges. In its quarterly earnings report, UiPath's revenues for the fourth quarter were up only 5% on a year ago to $424 million, citing "increasing global macro economic uncertainty" as a reason for revising down its 2026 fiscal outlook. The company's shares have fallen 18% in pre-market trading as a result. This acquisition may be a strategic move to boost UiPath's revenue growth, leveraging Peak.ai's expertise in decision-making AI solutions to cross-sell its wider set of automation solutions to Peak's customers.

The two companies had already been partnering prior to the acquisition, and the integration of Peak.ai's technology is expected to provide UiPath with more opportunities to capture revenue from Peak's customers. UiPath's market cap stands at around $6.5 billion, and this acquisition may be a key step in its efforts to expand its capabilities in the AI space.

UiPath's history in robotic process automation (RPA) has positioned it well to capitalize on the growing demand for AI solutions. The company's valuation reached $35 billion when it was still a privately-held startup, demonstrating the appetite for automation and AI technologies. In contrast, Peak.ai has been building AI assistants for businesses since before the wider conversation around AI's impact on the business world began.

The acquisition is expected to enable seamless integration of decision intelligence with automation, presenting an unprecedented opportunity to redefine how businesses operate. As Peak.ai's founders, Richard Potter, David Leitch, and Atul Sharma, noted in a message announcing the acquisition, "The ability to seamlessly integrate decision intelligence with automation presents an unprecedented opportunity to redefine how businesses operate."

While the deal price remains undisclosed, the acquisition is seen as a strategic move by UiPath to bolster its capabilities in the AI space. As the company continues to navigate the challenges of the current economic climate, this acquisition may be a key step in its efforts to drive revenue growth and expand its market share.

Further details on the deal price are still being sought. If you have any information, please contact us.