Massimo Group signs letter of intent to acquire AI-tech firm FST

Massimo Group announced that it has entered a non-binding letter of intent (LOI) to acquire 100% of the equity interests of FST Development Company Limited, a technology company specializing in outdoor power intelligence and AI health innovation.

The proposed transaction represents a major strategic milestone for Massimo, positioning the manufacturer at the conjunction of two rapidly expanding global trends: AI-enabled outdoor mobility and next-generation digital health robotics.

This is the second significant AI investment the Texas-based powersports manufacturer has made in the past several months. In October 2025, the company integrated Claude AI into its Oracle NetSuite Enterprise Resource Planning system. A move that is aimed at improving efficiency across sales, supply chain, finance, marketing, and customer service, while giving dealers faster support and more responsive service.

Strategic rationale

Massimo says it believes that intelligence, connectivity, and data-driven systems represent the next evolution of outdoor mobility and equipment manufacturing. At the same time, global demand for proactive, personalized, and scalable health solutions is accelerating, driven in large part by aging populations worldwide.

By acquiring full ownership of FST, Massimo says it plans to integrate its manufacturing scale, brand strength, and nationwide distribution network with FST’s full-stack AI capabilities, including intelligent control platforms, health-technology modules, and proprietary AI middleware. Upon successful closing, Massimo expects the transaction will enable it to build a unified intelligent ecosystem spanning mobility, health, and advanced system intelligence.

“This transaction represents more than an acquisition — it is a strategic transformation,” — David Shan, CEO.

“By bringing FST fully into the Massimo organization, we are combining our legacy of rugged, reliable vehicles with advanced AI-driven systems and software intelligence. Our objective is to make outdoor experiences safer, health monitoring more proactive, and advanced technology more accessible.”

Terms outlined in the LOI

• FST pre-money equity valuation is approximately $38 million to $50 million, reflecting its proprietary technology, integrated hardware-software capabilities, and growth potential.
• Massimo says it intends to acquire 100% of FST’s equity interests for total purchase consideration ranging from approximately $27 million to $35 million.
• The purchase consideration may be satisfied through the issuance of Massimo common stock, payment of cash of equivalent value, or a combination of both.
• Any equity consideration issued in connection with the transaction will be subject to a six-month contractual lock-up period following the closing.
• The release of such shares, if any, will be contingent upon the achievement of post-acquisition performance milestones and the successful integration of FST’s operations, as determined at the sole discretion of Massimo CEO David Shan.

The LOI is non-binding and does not obligate either party to complete the proposed deal, and the acquisition is not completed until final agreements are reached.