Glasgow-based digital chemistry data and software company DeepMatter has acquired French rival ChemIntelligence in a transaction valuing the business at up to £420,000.
ChemIntelligence has artificial intelligence (AI) that is used to develop chemical products and reactions faster.
The acquisition brings intellectual property and expertise that complements DeepMatter’s chemical reaction data, data collection platform and AI capabilities.
It should also broaden the company’s technical expertise in chemical formulation, which will expand its offering and address a broader customer base.
The two businesses will combine sales and marketing, operations, customer support and research resources.
Lyon-based ChemIntelligence enables the prediction of the properties of molecules, materials and formulations, suggesting the most relevant experiments to perform in a secure, certified end-to-end cloud environment.
ChemIntelligence’s unaudited revenue for the financial year ended 31 December 2021 was €120,000, with profit before tax of €20,000.
Mark Warne, chief executive of DeepMatter, commented: “The ChemIntelligence team bring considerable expertise which will strengthen our data and AI capabilities with our current customers – it will also allow us to reach into new customer segments.
“Our vision is to combine our proprietary chemistry data with proprietary algorithms in order to transform how medicines and other chemical molecules are made, significantly improving productivity, discovery and sustainability in the field of chemistry.”
The consideration will be payable in three tranches. The initial consideration will comprise the issue to the vendor of 23,333,334 shares, based on the closing share price of ChemIntelligence on 27 June – £26,000.
A maximum of 186,666,666 additional shares will be issued to the vendor, depending on both the share price performance of Deepmatter and the financial performance of ChemIntelligence for the year ended 31 December 2022 and the year ended 31 December 2023.
Deepmatter has the option to make any of the consideration payable in cash.