Machine learning and artificial intelligence company, Appen (ASX:APX) has entered into a binding agreement to acquire San Francisco-based Figure Eight Technologies.
Appen will pay upfront consideration of US$175 million plus earn-out consideration payable in March next year, expected to be in the range of US$60 to 80 million.
Figure Eight is a best in class machine learning software platform which will materially increase the quality of Appen’s revenues and the breadth of its customer base via high growth, high-gross margin recurring revenue from annual platform subscription fees.
The acquisition will be funded by a fully underwritten placement of A$285 million at an offer price of A$21.50 per new Appen share, representing an 11.8 per cent discount to last closing price of Appen shares on ASX.
Shares in Appen are currently in a trading Halt and last traded at $24.37.