Applied Digital plans cloud business spinout through EKSO merger

Applied Digital (NASDAQ: APLD) and EKSO Bionics Holdings (NASDAQ: EKSO) announced a non-binding term sheet for a proposed business combination that would merge Applied Digital's cloud computing unit with EKSO to form ChronoScale Corporation, an AI-focused compute platform.

Under the proposed transaction, Applied Digital would own approximately 97% of the combined company, which will operate as ChronoScale. The deal is structured to separate Applied Digital's accelerated compute platform from its data center ownership and development operations, allowing each business to scale independently.

Applied Digital Cloud generated $75.2 million in revenue for the twelve months ended August 31, 2025. The unit was among the first platforms to deploy NVIDIA's H100 GPUs at scale in 2023, according to the company.

"This Proposed Transaction emanates from our previously announced initiative to evaluate and explore strategic alternatives," said Scott Davis, EKSO's Chief Executive Officer. EKSO plans to continue exploring strategic transactions for the possible sale of all or substantially all of its current exoskeleton business.

"ChronoScale is intended to bring together a proven operating platform and a clear mandate: deliver accelerated compute at scale for the most demanding AI workloads," said Wes Cummins, Chairman and Chief Executive Officer of Applied Digital.

The transaction is expected to close in the first half of 2026, subject to due diligence completion, execution of binding documents, regulatory and shareholder approvals, and other closing conditions. ChronoScale expects to file registration statements and proxy materials with the Securities and Exchange Commission in connection with the proposed transaction.

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