TLDR
- C3.ai shares surged up to 10% in premarket trading following merger discussion reports with Automation Anywhere
- The talks are in preliminary stages without pricing terms and may not result in a deal
- Automation Anywhere could acquire C3.ai and take the combined company public through the transaction
- C3.ai trades at $1.77 billion market cap while Automation Anywhere was valued at $6.8 billion in 2019
- Analysts maintain a Hold rating on C3.ai with average price target showing 20.4% upside potential
C3.ai stock gained 8-10% in premarket trading Wednesday after reports surfaced of merger talks with Automation Anywhere. The Information reported the two companies are in discussions about a potential combination.
C3.ai, Inc., AI
The negotiations remain at an early stage. No pricing has been disclosed. The talks could collapse without reaching a final agreement.
The proposed structure involves Automation Anywhere acquiring C3.ai. The deal would bring the merged company to public markets. This provides Automation Anywhere with a public listing through the transaction.
C3.ai holds a market capitalization of $1.77 billion. Automation Anywhere’s most recent valuation was $6.8 billion in 2019. The valuation gap positions C3.ai as an attractive acquisition candidate for the private company.
Business Operations and Market Position
The merger would combine C3.ai’s enterprise AI software with Automation Anywhere’s robotic process automation platform. C3.ai serves clients like the U.S. Air Force, government agencies, and energy companies.
Automation Anywhere delivers agentic process automation solutions. The technology blends RPA with AI and generative AI for enterprise workflows. The company holds a leadership position in digital transformation software.
C3.ai stock has declined over 61% in the past year. Competition and ongoing losses have pressured shares. Market observers have long viewed the company as a takeover target.
Financial Results
C3.ai’s second quarter fiscal 2026 results showed an adjusted loss of $0.25 per share. The loss was narrower than estimates but wider than last year’s $0.06 per share loss. Revenue dropped 20.4% year-over-year to $75.1 million, beating the $74.9 million consensus.
Automation Anywhere delivered strong third quarter performance. AI bookings increased 45% year-over-year. These bookings accounted for over 70% of total bookings.
Remaining Performance Obligations at Automation Anywhere grew more than 20% year-over-year. The company posted another quarter of non-GAAP profitability. Free cash flow remained consistent while revenue expanded.
Analyst Views
Wall Street analysts hold a Hold rating on C3.ai stock. The consensus includes one Buy, four Holds, and three Sell ratings. The average price target of $15.17 implies 20.4% potential upside from current levels.
The merger speculation arrives as C3.ai seeks growth catalysts after a challenging year. Automation Anywhere wants a public listing for liquidity and expansion capital. Deal terms, valuation multiples, and integration strategies have not been revealed. Neither company has issued official statements about the reported discussions.
