Key Highlights

  • Duos Technologies acquired a Columbus, Georgia site for $15 million, using cash and a seller‑contingent earnout note.
  • The earnout note caps payouts at $15 million, payable only upon achieving three 5 MW power milestones.
  • After Dec 14 2026, the seller may elect to receive earned amounts in restricted shares priced at $10.50 each.

Duos Technologies Group (NASDAQ: DUOT) has completed the acquisition of a property in Columbus, Georgia to serve as the foundation for a new data center. The total consideration for the transaction is $15 million, with a cash payment of $5 million made at closing and the balance structured as a seller‑contingent earnout note. This acquisition expands the company’s infrastructure footprint and creates the potential to add up to 15 MW of power capacity, contingent on meeting defined milestones.

Data Center Acquisition

The company acquired the site located at 8 Corporate Ridge Parkway, which includes both the building and the surrounding land. The purchase price of $15 million reflects the strategic value of the location, which offers favorable utility rates and access to regional power resources. By securing ownership, Duos Technologies positions itself to develop a data center that can support significant power generation.

The transaction diversifies the firm’s asset portfolio and could enhance long‑term cash flow, provided the development proceeds as planned.

Earnout Note Structure

The seller‑contingent earnout note spans a three‑year period and releases payments only when the company achieves specific power‑capacity milestones. Each milestone represents an additional 5 MW of power capacity, and the seller receives $5 million upon each milestone’s completion, with total payouts capped at $15 million. If a milestone is not achieved, no payment is made for that segment.

Beginning on or after Dec 14 2026, the seller has the option to receive any earned amount in restricted shares of Duos Technologies. These shares have a par value of $0.001 per share and are priced at a fixed $10.50 per share, which reflects a modest premium over the prior valuation referenced in the letter of intent. A copy of the earnout note.

Investor Considerations

The structure of the earnout note aligns the seller’s interests with Duos Technologies’ ability to expand its power capacity while limiting immediate cash outflows. The optional equity component could introduce dilution, but it also provides a pathway for additional capital if the company successfully meets its development targets. Investors should monitor the progress of the data center build‑out and the company’s ability to meet the outlined milestones, as these factors will directly impact the financial outcomes tied to the earnout note.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.