Automation Anywhere Negotiates Deal to Acquire C3.ai and Go Public

2026-01-28 companies

Redwood City, Wednesday, 28 January 2026.
Automation Anywhere aims to go public by acquiring C3.ai, a reverse merger strategy capitalizing on the AI firm’s recent valuation slump to under $2 billion.

Strategic Reverse Merger Talks Underway

Enterprise software provider C3.ai (NYSE: AI) is currently engaged in advanced discussions to merge with Automation Anywhere, a private company specializing in robotic process automation (RPA) [1][3]. According to reports surfacing on Tuesday, 27 January 2026, the proposed transaction is structured as a reverse merger [1][8]. If finalized, this deal would see Automation Anywhere acquire C3.ai, effectively allowing the private automation firm to bypass a traditional initial public offering (IPO) and list on the public market immediately [2][8]. While neither company has officially confirmed the deal, C3.ai shares responded positively to the news, rallying 16% in pre-market trading on Tuesday [6] and rising over 7% in aftermarket sessions [3].

Valuation Disparities and Market Metrics

The negotiations highlight a stark contrast between the current market capitalization of C3.ai and the historical private valuation of Automation Anywhere. As of Tuesday’s close, C3.ai held a market capitalization of approximately $1.77 billion [6][7]. In comparison, Automation Anywhere was valued at $6.8 billion by private investors during its last funding round in 2019 [1][3]. This places the automation startup’s last known private valuation at roughly 3.842 times the current public market value of C3.ai. The talks arrive as C3.ai faces significant market headwinds; the company’s stock valuation more than halved throughout 2025 [3], plunging over 61% in the past year alone [6].

Leadership Exits and Fiscal Headwinds

These merger discussions follow a period of turbulence for the California-based AI provider, marked by executive leadership changes and declining revenue metrics. Late last year, C3.ai explored a potential sale following the departure of its founder, Thomas Siebel, from the CEO role [1][8]. The company’s financial performance has recently struggled to meet market expectations; in the second quarter of the 2026 fiscal year, sales fell 20.4% year-over-year to $75.1 million [6]. Furthermore, fundamental analysis reveals deep profitability challenges, with the company operating with a negative operating margin of -117.16% and a negative EBITDA margin of -113.39% over the trailing twelve months [7].

Consolidation in the Automation Sector

This potential combination signals a broader trend of consolidation within the enterprise software market, specifically at the intersection of artificial intelligence and automation [8]. Automation Anywhere, which competes with UiPath in the RPA space, recently acquired Aisera to bolster its agentic AI capabilities [5]. By merging with C3.ai, which provides enterprise-scale AI applications to clients such as the U.S. Air Force and the manufacturing sector [1], the combined entity could offer a comprehensive platform blending RPA with advanced AI tools [8]. However, analysts note that the pure RPA market is facing pressure as newer AI technologies, such as Large Language Models (LLMs), begin to commoditize traditional automation tasks [5].

Sources

artificial intelligence mergers