Serve Robotics Inc. (NASDAQ:SERV) shares are bouncing around Wednesday after the company announced it entered into an agreement to buy Diligent Robotics.
Diligent Robotics Acquisition Overview
Serve has signed a deal to acquire Diligent Robotics, expanding its autonomy platform beyond sidewalk delivery into indoor environments, with hospitals identified as one of the most impactful initial settings.
Diligent Robotics is a provider of AI-powered robot assistants for the healthcare industry. The transaction marks Serve's first move into healthcare-focused robotics.
Diligent Robotics is the developer of Moxi, an autonomous hospital delivery robot deployed in more than 25 hospital facilities across the U.S. The company said Moxi robots have completed over 1.25 million autonomous deliveries and represent one of the largest commercial deployments of mobile manipulation robots in hospitals. Annual sales per hospital facility are expected to range between $200,000 and $400,000.
Serve said the acquisition leverages a shared autonomy and AI stack, allowing learning and deployment data from indoor hospital environments to strengthen its broader Physical AI platform. Diligent's operations will continue as a subsidiary of Serve under the leadership of Diligent co-founder Andrea Thomaz.
Under the terms of the merger agreement, Diligent shareholders will receive Serve common stock valued at $29 million, subject to net debt and other adjustments. The deal also includes a potential earn-out of up to $5.3 million based on the achievement of specific milestones. All Diligent options and warrants will be canceled for no consideration at closing.
The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions, including regulatory approvals and Nasdaq listing authorization for the shares issued in the transaction.
SERV Sees Strong Short-Term Momentum
Currently, Serve Robotics is trading 10.4% above its 20-day simple moving average (SMA) and 14% above its 100-day SMA, indicating a strong short-term and intermediate-term bullish trend. Over the past 12 months, shares have decreased by 31.17%, and they are currently positioned closer to their 52-week highs than lows, reflecting a recovery phase.
The RSI is at 53.20, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, MACD is above its signal line, indicating bullish momentum, which aligns with the current price action.
The combination of neutral RSI and bullish MACD suggests mixed momentum, indicating that while there is some strength, traders should remain cautious.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Serve Robotics, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bearish (Score: 22.28/100) — Stock is underperforming the broader market.
The Verdict: Serve Robotics’s Benzinga Edge signal reveals a challenging momentum situation. While the stock is currently gaining, the low momentum score indicates that it may struggle to maintain this upward trajectory without stronger buying support.
SERV Price Action: Serve shares were up about 4% following the announcement before pulling back and turning negative for the session. The stock was down 4.19% at $12.80 at the time of writing, according to data from Benzinga Pro.
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