Massimo Group (NASDAQ:MAMO) announced on Tuesday that it has entered into a non-binding letter of intent to acquire 100% of FST Development Company, a move that signals the powersports manufacturer’s aggressive pivot toward AI-driven hardware and digital health robotics.
The deal values FST, a technology firm specializing in intelligent system-level solutions, at an equity valuation between $38 million and $50 million.
Massimo expects to pay between $27 million and $35 million for the company, using a mix of cash and common stock.
The acquisition marks a major strategic transformation for the Garland, Texas-based manufacturer, which is best known for its rugged UTVs, ATVs, and marine products.
By integrating FST’s "full-stack" AI capabilities—including proprietary middleware and predictive health algorithms—Massimo intends to create a unified ecosystem that blends outdoor mobility with proactive health monitoring.
The company plans to embed FST’s AI control platforms directly into its next-generation vehicle lines to reduce R&D costs and accelerate the time-to-market for connected, differentiated products.
The two companies have entered a 60-day exclusivity period to conduct due diligence, with a goal of executing definitive agreements by late March 2026.