iHuman acquires All Knowledge for $9.9M

The ¥67M is an upfront price and not a fixed one. It drops to ¥51M if certain material adverse events occur. The sellers can also earn up to ¥29M more in cash if financial targets are met over three years. iHuman bought a second app, Perfect Lingo, in the same agreement for ¥27M upfront. That brings the base total to ¥94M and the maximum cash outlay to ¥135M. The sellers are under common control with iHuman, so the deal counts as a related-party transaction. The board and audit committee approved it, and a Big Four firm supplied an independent valuation. Closing is still subject to customary conditions. Teng Li of All Knowledge becomes co-CEO once the deal closes, and Congyu Lin becomes chief strategy officer. iHuman said in its first-quarter report that integration was on track. All Knowledge is an app for humanities and AI literacy. Its tools include timelines, spatio-temporal views and relationship graphs. It moves iHuman beyond its children's focus toward learners of all ages. For AI founders, the deal shows one exit route for a small vertical AI app: sale to a larger, listed consumer company that wants AI features and a team. The earn-out and downside protection show buyers tying price to measured performance. Related-party buyers may also tie price to performance more tightly than outside acquirers.