Australian software company Appen (ASX:APX) has confirmed it received a merger proposal from U.S.-based digital data solutions business Innodata.

According to the proposal, Innodata offers A$0.70 worth of its shares for each share in Appen.

The potential all-stock deal details, however, have not been fully disclosed.

Appen and Innodata did not immediately confirm the deal’s value.

Appen is considering the bid’s implications for its shareholders and has agreed to a limited exchange of confidential information on a non-exclusive basis.

Appen noted that Innodata is one among several parties to have proposed transactions through strategic investments, or sale of part or entire Appen’s businesses.

The potential sale comes at a time when Appen, as one of the world’s leading artificial intelligence training providers, faces a challenging operating environment and weakened global demand, making cost-saving initiatives a necessity.

Appen (ASX:APX) is a leading Australian software company specializing in high-quality, human-annotated datasets for machine learning and artificial intelligence.