Internet of Things company Xped acquires Adelaide AI startup Jemsoft
ASX-listed Xped, an Adelaide company working in the Internet of Things space, has announced its acquisition of local machine learning and AI startup Jemsoft for $200,000 in cash and 50 million Xped shares, which are currently at 1.4 cents.
Founded in 2013 by Jordan Green and Emily Rich, Jemsoft’s work originally centered around a security solution for the retail industry that would have cameras analyse people as they approach a store in order to determine whether they are a genuine customer or may pose a threat, with the idea having come from Green’s experience being held at gunpoint during a robbery.
This technology developed into Jemsoft’s Monocular API platform, which has over the years been used by companies in varying industries; according to Xped, the startup has completed projects for clients including global conglomerates, SMEs, government, and other startups.
Green said, “Xped’s success doing deals with companies in the US and China, specifically with device manufacturers and the successes they’ve had in gaining adoption of their technology at the chip and module levels, showed us they’re the right partner to fulfil our vision of providing the most usable and accessible cognitive computing products and services in the world.”
With Rich and Green to stay on with the company, as part of the deal Xped will acquire Monocular, Jemsoft’s intellectual property, and the 51 percent share the startup has in Media Intelligence Co (MIC), a joint venture created through a partnership with academic Dr Karen Nelson-Field last year.
MIC, which provides media companies and brands media measurement solutions and real-time insights, has a cornerstone research contract in place with Think TV Australia, which generates $500,000 a year in licensing fees.
“This acquisition adds a substantial piece in Xped’s larger vision of building a complete end-to-end Internet of Things platform,” Xped said in a statement.
“By leveraging Jemsoft’s advanced software and cloud-based expertise, Xped will implement leading artificial intelligence and consumer friendly technologies into its platform.”
The acquisition comes at an interesting time, with The Advertiser reporting that Nelson-Field is taking Jemsoft to Federal Court, applying to wind up the company due to a debt of over $67,000 from consultancy work she did in early 2016.
With a hearing scheduled for May 24, Nelson-Field told The Advertiser she had had no notice of the acquisition.
Xped earlier this year secured deals with Chinese electronics manufacturer Lenze Technology, which will see its software integrated into more than 200 million devices, and with Solekai Systems, with its tech to be integrated into the platforms of Solekai’s existing customers, such as energy management systems, media players, and set top boxes.