NEW YORK, January 1, 2026, 6:19 a.m. ET — Markets are closed.
- BigBear.ai announced that it has completed its acquisition of Ask Sage for $250 million in cash.
- Shares last closed 1.8% lower at $5.40. US markets are closed for New Year's Day.
- Shareholders are scheduled to vote on January 22 on a proposal to increase the number of authorized shares to 1 billion.
BigBear.ai Holdings, Inc. (NYSE: BBAI) announced late Wednesday that it has completed a $250 million cash acquisition of Ask Sage, a secure generative AI platform used by 16,000 government teams and more than 100,000 users. BigBear.ai Holdings Co., Ltd.
“The completion of the Ask Sage acquisition marks an important milestone for BigBear.ai,” said Kevin McAleenan, CEO. BigBear.ai Holdings Co., Ltd.
The stock closed 1.8% lower at $5.40, with U.S. markets closed on Thursday for New Year's Day.
The acquisition deepens the McLean, Virginia-based company's commitment to secure generative AI, software that can generate text and other output from prompts for defense and intelligence customers.
This push is important right now, as government agencies are testing AI tools while also tightly controlling data access and security clearances, creating demand for products that can run within restricted networks.
The transaction price of $250 million represents approximately 55% of the $456.6 million in cash BigBear.ai reported as of September 30th. As of November, the company maintained its full-year 2025 revenue forecast at $125 million to $140 million.
BigBear.ai's year-end market value was approximately $2.36 billion based on the closing price.
Ask Sage is designed to deploy and manage large-scale language models (LLMs), the text generation systems behind chatbots. BigBear.ai said the platform was built for highly regulated environments, such as defense and intelligence, where systems often run on restricted networks.
BigBear.ai is also asking shareholders to approve an amendment to increase the number of authorized shares from 500 million to 1 billion, according to McAleenan's letter. Authorized shares are the maximum number of shares a company can legally issue, and while raising the limit could increase funding flexibility, it could also exacerbate dilution concerns. big bear
McAleenan said the changes would not trigger an immediate issuance of shares, and that proxy advisory firms Institutional Shareholder Services and Glass Lewis were recommending investors vote in favor. big bear
The special meeting of shareholders will be reconvened on January 22nd at 3:00 pm ET, according to the company's investor website.
Even as BigBear.ai writes a big check to close Ask Sage, the outcome of the vote could determine how it funds future acquisitions and fundraising.
BigBear.ai operates in a crowded AI software market that includes big players like Palantir Technologies and C3.ai, while traditional defense contractors are rolling out their own AI products.
before the next session
Trading resumes on Friday, January 2nd, with investors getting their first full regular session readings on Buy Ask Sage.
All eyes will be on future filings and management comments detailing how Ask Sage will cover its 2026 revenues, profits and cash expenses.
Technical traders see near-term support at $5 and resistance at the $5.50 area, with the January 22 shareholder vote looming as the next scheduled trigger.
