Applied Digital to Spin Out Cloud Business, Proposes Business Combination with EKSO to Launch ChronoScale

Applied Digital and EKSO Bionics Holdings announced Monday they have entered into a non-binding term sheet for a proposed business combination that would merge Applied Digital’s cloud computing business with EKSO to create ChronoScale Corporation, a platform designed for artificial intelligence workloads.

Applied Digital gained 2.1% in premarket trading, while EKSO Bionics soared 45.3%.

Under the proposed transaction, Applied Digital would own approximately 97% of the combined company, which would operate as ChronoScale. EKSO, currently valued at $18.64 million with a stock price of $5.46, appears undervalued according to InvestingPro analysis. The companies expect the deal to close in the first half of 2026, subject to due diligence, final binding documents, regulatory and shareholder approvals.Investors seeking deeper insights can access EKSO’s comprehensive InvestingPro Research Report, one of 1,400+ detailed analyses that transform complex data into actionable intelligence for smarter investing decisions.

The merger aims to create a focused platform delivering high-performance computing in what the companies describe as a capacity-constrained market. By separating the accelerated compute platform from Applied Digital’s data center business, both entities would be able to scale independently and pursue distinct growth strategies.

Applied Digital Cloud, which was among the first platforms to deploy NVIDIA’s H100 GPUs at scale in 2023, generated approximately $75.2 million in twelve-month revenue as of August 31, 2025, according to the press release statement.

"ChronoScale is intended to bring together a proven operating platform and a clear mandate: deliver accelerated compute at scale for the most demanding AI workloads," said Wes Cummins, Chairman and CEO of Applied Digital.

EKSO plans to continue exploring strategic transactions for the possible sale of all or substantially all of its current business.