Peak AI acquired by UiPath in strategic deal

Peak AI, the Manchester and Jaipur-based artificial intelligence software firm, has been acquired by American automation group UiPath for an undisclosed sum. The acquisition is part of UiPath’s strategy to expand its AI capabilities and comes after what has been a challenging period for Peak AI’s business growth.

Founded in 2015 by Richard Potter, David Leitch, and Atul Sharma, Peak AI focuses on using AI-powered technology to enhance decision-making in areas like inventory management and pricing. It works with high-profile clients such as Nike, KFC, and Superdry, and had positioned itself as a potential UK AI leader, raising $119 million in funding from investors including Softbank, Praetura Ventures, and MMC Ventures. At its peak, the business employed 343 staff across offices in Manchester, Jaipur, New York, and Brisbane.

Despite its ambitious growth plans, Peak AI faced slower-than-expected adoption of its services. Revenue for 2023 stood at £9 million, but the company fell short of profitability, posting a pre-tax loss of £19.4 million. These challenges prompted significant restructuring, including staff reductions, to manage costs. By the end of 2023, the workforce had been cut to 249 employees and further reduced to around 200 in 2024.

UiPath, listed on the New York Stock Exchange, began discussions with Peak AI over a year ago after a successful collaboration with shared customers like Heidelberg Materials in the UK. Peak AI also pushed forward with its own developments, including the launch of its first generative AI service in 2024, showcasing its commitment to innovation despite financial pressures.

Richard Potter, the CEO of Peak AI, commented on the acquisition, calling it a “perfect next step” for the company at this stage of its journey. He expressed confidence that UiPath’s global presence and expertise would enable Peak AI to accelerate its vision of delivering scalable decision-making solutions powered by AI.

Although the deal does not deliver the £1 billion valuation Peak AI initially aimed for, early investors have welcomed the move as providing a strong exit and securing a promising future for the firm’s team and technology. UiPath CFO Ashim Gupta indicated the acquisition would have limited short-term impact on UiPath’s finances but emphasised Peak AI’s strategic value.