Machine learning and artificial intelligence developer Appen (ASX:APX) has announced today it has agreed to acquire Californian-based Leapforce and RaterLabs for a total value of US$80 million, equivalent to $105 million Australian dollars.
The acquisition will be funded through new shares, new debt facilities, existing cash reserves, a fully underwritten placement and a share purchase plan.
The share placement aims to raise $25 million and is priced at $5.80 per new shares, to be issued on 6 December 2017.
Appen will pay US$64 million in cash and issue US$16 million worth of Appen shares to complete of the transaction which is expected to occur on 7 December 2017.
The company said the acquisition adds scale and scope to enable more participation in the high growth artificial intelligence market, and establishes Appen as the world’s leading provider of search relevance services.
Shares in Appen (ASX:APX) are on a trading halt, last trading at $5.83.