Phunware To Acquire Lyte Technology To Drive Blockchain Ambitions

Enterprise cloud provider Phunware Inc PHUN agreed to acquire Lyte Technology for up to a $10.32 million purchase price in cash and stock, with $3.32 million cash at closing and the remaining $7 million in earn-out.
Lyte Technology specializes in marketing and distributing custom, high-end computer systems off-the-shelf with advanced graphic processing units for gaming, streaming, and cryptocurrency mining.
The acquisition will help efficiently bridge the gap between external data on the existing web and blockchain-based applications on mobile, Phunware CEO Alan S. Knitowski said.
The acquisition is likely to close within the next 30 to 45 days.
Currently located in Illinois, Lyte Technology employs over 25 people. Lyte Technology's operations will relocate to Austin, Texas, upon closing of the deal.
Phunware held $2.8 million in cash and equivalents as of June 30.
Price Action: PHUN shares traded lower by 0.79% at $1.0318 on the last check Monday.