Daedalus Special Acquisition Corp. signed a non-binding letter of intent with HubX Yazılım Hizmetleri Anonim Şirketi, a Turkish artificial-intelligence company, to pursue a business combination that would take HubX public on the Nasdaq Stock Market.
The proposed transaction includes an investment of up to $75 million for HubX in connection with the deal. HubX, established in 2022, develops AI-powered consumer applications that have been downloaded more than 600 million times and reach more than 100 million users monthly. The company operates autonomous in-house studios focused on specific application verticals, supported by shared central resources including marketing, data analytics and engineering infrastructure. It also runs an AI research center and uses a proprietary central platform.
HubX was an early adopter of Google's tensor processing units and reduced costs by 40% for AI image generation. Akin Babayigit, co-chief executive officer of Daedalus, said the consumer AI market is growing rapidly, creating significant opportunities for companies with strong products and distribution.
The parties intend to negotiate definitive agreements as soon as practicable. The final transaction structure will depend on business, legal, tax, accounting and other considerations, and the deal remains subject to execution of definitive agreements, completion of due diligence, shareholder and regulatory approvals, and other customary closing conditions.
