Sarine Technologies has signed an agreement to purchase a stake of just over 33% in Kitov.ai, completing a deal it announced in February.
In acquiring the company, Sarine aims to expand its focus to other industries due to the current challenges in the diamond trade, the Israel-based producer of technology for the diamond industry said Tuesday. Kitov.ai will be able to help the company branch out into different fields not linked to the diamond sector.
Sarine will transfer an initial cash investment of $4.1 million to Kitov.ai, which will go toward shareholders and to support the company’s working capital. Sarine is also providing Kitov.ai with a convertible $2.6 million loan that the diamond equipment manufacturer may execute at its sole discretion between January 1, 2027, and February 15, 2028. Upon conversion, Sarine’s total ownership in Kitov.ai would increase to 51%. The deal was based on Kitov.ai’s valuation of $10.6 million.
Kitov.ai has built an artificial intelligence (AI)-powered 3D visual inspection system that automatically checks products for key parts, correct placement, surface quality, labels, barcodes, and more. Its flexible software lets it examine multiple parts at the same station, making it suitable for factories that produce small batches of many different items. The company is now building a recurring revenue model that incorporates software licensing. It is also exploring partnerships with other leading quality assurance and quality control (QA/QC) companies to create combined solutions. The goal is for the new business model to become profitable in 2026.
“Kitov.ai has top-notch technology in an expansive field and an impressive list of customers across a multitude of disciplines,” said Sarine executive chairman Daniel Glinert. “I am sure that with our contribution to their business strategy and execution, I believe we can help Kitov.ai evolve into a leading world-class provider of QA/QC solutions. No less importantly, the opportunity to diversify into other fields comes at an opportune time and at a reasonable price.”
Image: Technology from Kitov.ai. (Kitov.ai)