Duos Technologies Group, Inc. (NASDAQ: DUOT) completed the sale of its wholly owned rail technology subsidiary, Duos Technologies, Inc., to Sandbank Acosta, LLC on August 5, 2026. The transaction, effective as of June 30, 2026, marks a strategic pivot for the Jacksonville-based firm, allowing it to concentrate capital and management attention on scaling its Edge Data Center and AI infrastructure platforms through subsidiaries Duos Edge AI, Inc. and Duos Technology Solutions, Inc.

The divestiture returns the original operating business of Duos to private ownership under the brand DuosTI. The deal was reviewed and approved by the Board of Directors as a related-party transaction, given that Adrian Goldfarb, Duos’ interim Chief Financial Officer, holds a 50% membership interest in the buyer, Sandbank Acosta, LLC. An independent fairness opinion process supported the transaction during the second quarter of 2026.

Leadership Transition

Javier Acosta has been appointed President of DuosTI, succeeding Goldfarb, who stepped down from the role he held since March 2026 to oversee the divestiture. Acosta previously led the commercialization and field deployment of the Railcar Inspection Portal across North America.

"DTI built the technology that put Duos on the map, and its Railcar Inspection Portals remain the standard for AI-driven train inspection in North America," said Doug Recker, Chief Executive Officer of Duos Technologies Group. "This transaction completes the strategic repositioning we announced earlier this year... allowing Duos to dedicate its full capital and management attention to scaling our Edge Data Center and AI infrastructure platforms."

Business Operations

DuosTI operates as an independent, privately held company focused on railroad technology. It maintains the largest installed base of Railcar Inspection Portals (RIP®) in North America, serving major carriers in the United States, Canada, and Mexico. The company holds an extensive patent portfolio covering wayside scanning and AI defect detection, along with what it describes as the largest image database of railcar components globally.

Duos Technologies Group will provide certain transition services to DuosTI following the closing to ensure continuity for customers and employees. The move finalizes the strategic repositioning announced by Duos in March 2026.

What the Numbers Show

The transaction represents a complete exit from the rail inspection sector for Duos Technologies Group, shifting its revenue profile entirely toward data center infrastructure. While no financial value for the sale was disclosed, the strategic implication is a consolidation of resources. By divesting the mature rail business, Duos aims to accelerate growth in the high-demand Edge Data Center market, addressing distributed digital infrastructure needs without the operational complexity of maintaining two distinct industrial verticals.

Duos Edge AI, a subsidiary of Duos Technologies Group, has entered into a five-year agreement valued in excess of $111 million to provide 10 MW of critical IT-load capacity at its Columbus, Georgia data center campus. The new agreement is expected to expand the campus's total IT-load capacity to 20 MW by the end of the fourth quarter of 2026. This expansion follows Duos Technologies Group's acquisition of the property on July 14, 2026, for $15 million in cash and the issuance of a Seller Contingent Earnout Note.

The Note has a three-year term and provides for payments to the seller solely upon the achievement of certain specified milestones. For each additional 5 MW of power delivered by or on behalf of the seller above the amount available to the Property at closing, the Company will pay the seller $5 million. There are three milestones in the Note, allowing for a maximum payout of $15 million. If any milestone is not achieved by the end of the three-year term, no payment will be made with regard to that milestone. At the seller’s option, at any time on or after December 14, 2026, a milestone payment may be made in restricted shares of the Company’s common stock, par value $0.001 per share, at a fixed price through the term of $10.50 per share.

The capacity under the new agreement is expected to become available in the fourth quarter of 2026. This follows the previously announced initial 10 MW deployment at the Columbus campus, which is expected to begin generating revenue in August 2026. With these additions, Duos Edge AI has confirmed 20 MW in total contracted deployment for 2026.

Key Agreement and Acquisition Details