Nextech3D.ai to acquire remaining ARway stake, consolidate ops

Nextech3D.ai is advancing a bid to acquire the remaining 60% of ARway it does not already own. Chief Executive Officer Evan Gappelberg noted the company already controls roughly 40% of ARway and has spent years aligning their technologies and customer bases.

The financial mechanics of the deal carry weight for a company of this scale, bringing approximately $1.5 million in annual revenue and an equal amount in profit to Nextech's balance sheet. "The transaction brings about $1.5 million in annual ARway revenue and approximately $1.5 million in profit," Gappelberg said. With ARway generating gross margins above 90%, the CEO argued the unit is simply too profitable to operate as a standalone entity.

"This isn't a traditional acquisition because we already own about 40% of ARway," Gappelberg said. The transition eliminates duplicated corporate overhead by moving from two separate entities to a single platform with a unified engineering team. This directly addresses lingering investor questions regarding the complex relationship between Nextech, ARway, and Toggle.

The deal also highlights a shift in the composition of Nextech's revenue, as the company moves away from single-year agreements in favor of extended enterprise contracts. "Where we previously signed one-year agreements almost exclusively for Map D, nearly every new agreement is now for two, three or four years," Gappelberg noted. This transition reduces the company's dependence on annual renewals, giving shareholders greater predictability regarding future revenue.

Consolidating ARway supports Nextech's broader goal of becoming the primary operating system for live events. By unifying these resources, management aims to build a more scalable organization anchored by a software-driven revenue model. Bringing a high-margin business entirely in-house accelerates this strategic pivot.