Duos Technologies sells rail subsidiary to focus on edge data centers

Duos Technologies Group (NASDAQ: DUOT) has completed the sale of its rail technology subsidiary, Duos Technologies, Inc. (DTI), to Sandbank Acosta, LLC, a Florida limited liability company, according to a company statement.

The transaction closed on August 5, 2026, with an effective date of June 30, 2026. DTI will now operate as an independent, privately held company under the DuosTI brand, led by newly appointed President Javier Acosta.

DTI develops machine vision and artificial intelligence-based inspection systems for moving trains and operates what the company describes as the largest installed base of Railcar Inspection Portals (RIP®) in North America, serving carriers in the United States, Canada, and Mexico.

The sale was structured as a related-party transaction. Adrian Goldfarb, the company's interim Chief Financial Officer, holds a 50% membership interest in Sandbank Acosta, LLC. The deal was reviewed and approved by Duos' Board of Directors and supported by an independent fairness opinion process conducted in the second quarter of 2026.

Goldfarb had served as President of DTI since March 2026 to oversee the business and the divestiture process. He stepped down from that role upon closing, with Acosta assuming the presidency.

"This transaction completes the strategic repositioning we announced earlier this year, placing the rail business with owners who are singularly focused on its growth while allowing Duos to dedicate its full capital and management attention to scaling our Edge Data Center and AI infrastructure platforms," said Doug Recker, Chief Executive Officer of Duos.

The divestiture completes a repositioning announced by Duos in March 2026. The company will now concentrate resources on its Edge Data Center and AI infrastructure businesses through two subsidiaries, Duos Edge AI, Inc. and Duos Technology Solutions, Inc. Duos will provide transition services to DTI for a period following the closing.

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