Listed insurtech Flamingo AI has agreed to sell its Flamingo Customer Experience and Flamingo Ventures businesses to BDNM Investments.

Director Natraj Balasubramaniam says the $500,000 cash acquisition will allow BDNM – which was incorporated in Australia on June 26 – to use its expertise in artificial intelligence to expand Flamingo’s client base, products and services and countries of operation.

“As a US/Australian-based business, BDNM is excited by the Flamingo AI acquisition,” said Mr Balasubramaniam, who is based in New York, .

The news comes after a proposed friendly takeover of Flamingo by Rymamay Investments fell through in May when the parties failed to agree the terms of a share sale.

Flamingo Founder Catriona Wallace and executives Bryn Hardcastle and Zane Lewis will remain on the board, which will support BDMN to ensure a smooth transition. It is expected the business will continue with key contracts and client responsibilities in both Australia and the US.

“The BDNM team have significant experience in growing technology businesses as well as a strong focus on supporting and servicing the company's existing clients,” Ms Wallace said.

BDNM plans to continue development of the Flamingo AI Smart Hub in line with existing customer requirements and it will promote the Smart Hub product to prospective clients in both countries.

A shareholder vote on the sale in is expected in October.