Luda Signs Agreement to Acquire 55% of AI Infrastructure Company
Key Facts
Luda Technology Group said it signed an agreement on October 29, 2026, to buy 55% of Asia AI Data Center and Quantum Technology, following an earlier memorandum of understanding between the parties. According to a summary of an announcement published by GlobeNewswire, the agreement aims to move Luda into managing computing infrastructure operations. The deal marks a shift toward an activity different from the company’s core business of manufacturing and trading stainless steel and carbon steel flanges and fittings. Luda says the target company supports the development of data centers and advanced cooling systems for AI and high-performance computing projects in Asia. The available summary did not specify the final terms of the agreement or when it would close.
The memorandum of understanding announced in June included proposed consideration of $400,000 in cash and Luda common shares valued at $535,000. Those terms apply to the earlier memorandum of understanding, and the available summary does not establish whether they remained unchanged in the stock purchase agreement signed in October. The company says the target’s activities include supporting the development of data centers and advanced cooling systems for AI and high-performance computing projects and related infrastructure. Its operations are located on property it owns in Hong Kong, according to a Luda disclosure. The activity places the acquisition within a plan to expand into data center-related services, while the available information does not indicate that the target company is already generating revenue from these services.
The identity of the proposed seller is relevant to the deal structure: Luda said Liu Liangping was the target company’s chief executive and director, while also serving as Luda’s chief operating officer. The disclosure added that Liu is the wife of Ma Biu, Luda’s chief executive, director and one of its ultimate beneficial owners. Liu resigned from Luda’s board on June 18, 2026, according to a company filing with the U.S. Securities and Exchange Commission. These positions link the parties involved in the deal to the management of both companies. The proposed seller’s connection to management therefore stands out among the acquisition disclosure details.
The move comes as Luda faces declining revenue. Revenue fell by about $11.3 million, or 25.3%, to $33.5 million in fiscal 2025, from $44.9 million in fiscal 2024. The company attributed the decline mainly to lower sales in the Chinese market. China remained a major source of revenue, accounting for 73.3% of the total in fiscal 2025, compared with 83.8% in the previous year. This shows that the new activity comes as the company remains heavily reliant on the Chinese market, despite its reduced share. Luda describes its core business as manufacturing and trading stainless steel and carbon steel flanges and fittings.
Luda said in an earlier disclosure that it was seeking investment opportunities in the global data center industry and planned to use its agent network to expand exports of AI products and services related to data centers. Signing the agreement represents a move from exploring those opportunities to a specific investment step, according to the company. Its chief executive said Luda expects to “be able to begin generating revenue from the AI services sector.” That remains the company’s expectation, while the available facts do not include realized revenue from the new sector. No specific date was given for the start of that revenue or the completion of the acquisition.
Luda shares, listed under the ticker LUD, closed at $3.90 on October 29, 2026, compared with $3.56 in the previous session. Before that, they closed at $3.52 on October 23, then $3.88 on October 26 and $3.82 on October 27. These prices record closing moves in the sessions cited, without data on intraday highs or lows in any session. These figures alone are not enough to attribute the share move to the agreement. The available summary did not include a later date for completing the deal or starting the business.