South Yorkshire software company IntelliAM has completed the acquisition of engineering group 53 North a day after launching on the Aquis Stock Exchange Growth Market.
IntelliAM, based in Dinnington, Sheffield, specialises in AI and machine learning for the manufacturing industry, and this week saw the business start trading on the AQSE, raising £5.08m in the placing. IntelliAM was formed to use AI models to increase operating efficiencies for clients, and its vision is to harness the power of artificial intelligence through machine learning and to revolutionise asset management within manufacturing.
The company takes vast amounts of data from machines, processes and systems, including IOT (internet of things) devices. Instructions are then provided through its IntelliAM platform to boost clients’ operations. The company is led by chief executive Tom Clayton, who is founder of Sheffield maintenance engineering and asset management specialist 3 Degrees North Engineering Limited, which trades as 53 North, and chairman David Richards, the former CEO of WANdisco and managing partner of Yorkshire AI Labs.
Back in March it signed heads of terms to acquire 53 North, saying it planned to complete the deal immediately after being admitted to the AQSE market. A stock market note announced the completion of the acquisition of 53 North. It follows an agreement signed last week in which the company agreed to purchase the entire issued share capital of 53 North for £5.187m.
The deal entails 50% to be paid in shares – and around 2.7m new ordinary shares have now been issued to the founders – and the remaining 50% of the purchase price, £2.59m, has been paid in cash.
On entry to the market, it said: “The directors believe that the IntelliAM platform enables fast, accurate and secure ingestion of data to provide valuable insights for clients that lead to higher revenue and lower costs through improved productivity, increased reliability, energy savings and improved supply chain.”
It said the gross proceeds of the £5.1m fundraise would be used to pay the fees and expenses relating to the flotation, and to pay the initial cash consideration in relation to 53 North. The balance of around £3.3m will be used to cover overhead and ongoing costs, to continue research and development to accelerate its platform and software development, and to hire additional key personnel.
53 North, meanwhile, is a provider of asset care consulting and management strategies for manufacturers, particularly in the fast-moving consumer goods (FMCG) sector. The business has been trading for over 11 years, and in 2016 achieved a turnover of £1m through contract wins with two major FMCG companies. Since then, it has more than doubled sales and boasts some of the world’s top FMCG companies as clients.
IntelliAM said: “53 North has established relationships with some of the largest food and beverage companies in the world, as well as established names in pharmaceuticals, materials, and industrial manufacturing. The directors believe that the IntelliAM platform could deliver increased productivity, and large cost savings for these clients, and initial proof of value sites for clients are already yielding very positive results.”
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
