UiPath acquires AI firm Peak for industry solutions

NEW YORK - UiPath (NYSE: PATH), a notable player in enterprise automation and AI software currently valued at $6.5 billion, has announced the acquisition of Peak, a Manchester-based AI company. The transaction is aimed at bolstering UiPath’s vertical AI solutions strategy and expanding its agentic automation platform. With impressive gross profit margins of 83% and a strong liquidity position, as indicated by InvestingPro data, UiPath appears well-positioned for this strategic move.

Peak’s AI platform is recognized for its ability to optimize inventory and pricing for a diverse clientele, streamlining these processes without the need for extensive in-house technical teams. By integrating Peak’s purpose-built AI applications with UiPath’s platform, the company expects to enhance its offerings for industry-specific use cases. According to InvestingPro analysis, UiPath’s revenue grew by 16.5% in the last twelve months, demonstrating strong market momentum.

Daniel Dines, UiPath’s Founder and CEO, emphasized the acquisition’s role in accelerating their mission and delivering value to customers through optimized solutions. Peak’s AI-driven applications facilitate complex decision-making in areas like inventory planning and product pricing, which will now benefit from UiPath’s global reach and industry expertise.

Richard Potter, CEO & Co-Founder of Peak, expressed enthusiasm for the merger, citing the convergence of automation and AI as a harbinger of new enterprise possibilities. He anticipates that UiPath’s commitment to AI innovation will expedite Peak’s vision of providing businesses with specialized decision-making AIs at scale.

The integration of Peak’s solutions is expected to provide a backbone for new Pricing and Inventory Agents within the UiPath platform, supporting stringent business process requirements. Additionally, Peak’s Decision Intelligence capabilities are slated to enhance UiPath’s orchestration features, allowing for autonomous processes based on contextual customer data.

This acquisition follows a successful partnership between the two companies, which has already yielded tangible benefits. A notable example is the transformation of the quoting pricing process for Heidelberg Materials, a major building materials manufacturer in the UK. The collaboration between UiPath and Peak resulted in improved sales team efficiency and increased conversion rates for Heidelberg Materials.

The acquisition is anticipated to offer customers of both UiPath and Peak the opportunity for increased revenue and margin improvement through the combined technologies. The financial terms of the acquisition were not disclosed in the press release statement. Based on InvestingPro analysis, UiPath appears undervalued at current levels, with analysts projecting profitability this year. For detailed insights and access to 10+ additional ProTips about UiPath, including comprehensive valuation analysis and growth projections, investors can explore the full Pro Research Report available on InvestingPro.

In other recent news, UiPath Inc. experienced a reaffirmation of its Hold rating by Needham, following discussions with a key player in the Robotic Process Automation (RPA) sector. The conversation highlighted a gradual uptick in demand for UiPath’s newer products, such as task mining and process discovery, which are gaining popularity among established customers. Notably, the demand for UiPath’s services is increasing in regions like Africa and the Middle East, while remaining stable in the Americas and Europe. The introduction of new Generation AI functionality is perceived as an enhancement to existing RPA services rather than a replacement. Although new clients are primarily choosing UiPath’s Cloud services, the transition rate of existing customers to the cloud remains low. On-premises deployment continues to be a viable option for new users. UiPath, along with Automation Anywhere, is recognized as a leading solution in the RPA market, with UiPath offering a comprehensive software platform. These developments provide insights into UiPath’s current market position and product offerings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.