C3.ai Inc. (NYSE:AI) stock surged 15.87% during the pre-market trading session on Wednesday amid reports that the enterprise AI software provider is in discussions to merge with software company Automation Anywhere.
If the deal goes through, Automation Anywhere would acquire C3.ai and go public, reported The Information on Wednesday.
C3.ai supplies enterprise AI software used by clients like the U.S. Air Force across sectors such as energy and manufacturing, while Automation Anywhere develops task-automation software and was valued at $6.8 billion by private investors in 2019.
C3.ai did not immediately respond to Benzinga‘s request for comment on the potential deal.
The potential merger comes after C3.ai’s founder, Thomas Siebel, stepped down as CEO. The company had been exploring various options, including a potential sale, according to a previous report by Reuters.
Federal Business Powers Growth Outlook
In December, C3.ai posted a smaller-than-expected quarterly loss of 25 cents per share and slightly beat revenue estimates with $75.15 million. The company said results were driven by strong performance in its federal business and increased high-value deal activity, with CEO Stephen Ehikian highlighting the federal market as a key growth driver and outlining a focused execution plan targeting its fastest-growing sectors.
The management expects federal business to remain a durable growth driver due to increased use of commercial solutions, expanded AI adoption, and reindustrialization initiatives like the Maritime Industrial Base.
Benzinga Edge Stock Rankings shows that C3.ai has a weak price trend over the short, medium and long term. Benzinga’s screener allows you to compare C3.ai’s performance with its peers.
Price Action: Over the past year, C3.ai stock declined 61.82%, as per data from Benzinga Pro. The stock fell 2.55% to close at $12.60 on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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