Overview
- CXApp closed the acquisition of Australia-based EngineRoom for $4.6 million on June 3, 2026 through a new subsidiary called CXAI Australia.
- The purchase price is structured roughly 65% cash, 25% performance-based earnout, and 10% escrow to tie part of payment to future results.
- CXApp projects the deal will lift its annualized revenue run-rate from about $4 million to more than $12 million and add about $1.6 million in adjusted EBITDA.
- EngineRoom brings roughly $8.1 million in annualized revenue with about 94% recurring revenue and more than 50 mid-market customers, and founder Adam Laurie will remain as general manager for at least three years to support integration.
- The announcement produced a sharp after-hours share rally with outlets reporting increases between roughly 33% and 72.7%, and a concurrent private placement of 12,267,843 shares to Avondale Capital has raised dilution and execution risks that will determine whether the company achieves its projected gains.