Adisyn to strengthen data centre and cybersecurity solutions with 2D Generation acquisition

Perth-based data solutions company Adisyn (ASX: AI1) has entered formal negotiations to acquire Israeli semiconductor developer 2D Generation.

The proposed transaction will allow Adisyn to leverage 2D’s innovative semiconductor solution to generate opportunities in target markets including defence applications, data centres and cybersecurity.

It builds on a binding collaboration agreement signed in July which aims to combine Adisyn’s expertise in data centre management, managed information technology services and cybersecurity with 2D’s industry-leading capabilities in next-generation artificial intelligence (AI) semiconductor solutions.

Expanding business

The deal is believed to be a crucial step forward for Adisyn’s expanding business, allowing it to focus on capital-light semiconductor intellectual property (IP) solutions in its existing business segments rather than competing in the high-capital-expenditure infrastructure space.

Under the terms, Adisyn will be able to control the development of 2D Generation’s unique IP and maintain full ownership of the end product.

The companies are now finalising a binding share purchase agreement, which is expected to be executed within the next three weeks.

Patented solution

2D Generation has developed an industry-first patented solution of graphene coating at below 300 degrees Celsius, opening the door to the next generation of semiconductors capable of further miniaturisation, lower power consumption, less heat and greater computational power.

The technology is centred around the aim of improving the performance and capabilities of the “interconnect” (the conductive pathways that connect different components or regions within an integrated circuit), which are typically made of metals such as aluminium or copper and can be implemented in different layers within the semiconductor structure.

They are crucial for the functionality of the integrated circuit, facilitating the flow of electrical signals between transistors, capacitors, resistors and other elements on the chip.

2D is aiming to commercialise its graphene coating technology through licences with one or more major semiconductor manufacturers.

Cutting-edge technology

Adisyn chair Shane Wee said the 2D acquisition would create a “transformative partnership”.

“2D’s access to cutting-edge advancements in AI semiconductor technology will position us at the forefront of the industry and enable us to deliver solutions that are faster, more compact and energy-efficient,” he said.

2D chief executive officer Arye Kohavi also welcomed the deal.

“Our interactions with Adisyn’s team have been productive and insightful and we have no doubt that working together on the development of cutting-edge AI hardware and software will create a huge opportunity in the data centre and cybersecurity defence industries.”

Capital raising

The proposed acquisition and development of 2D Generation will be funded by a $3 million equity capital placement to new and existing sophisticated investors.

Adisyn will issue 60 million shares priced at $0.05 each, plus 15 million free-attaching options exercisable at $0.075 within three years of issue.

Sandton Capital Advisory has been appointed sole lead manager and book-runner to the raising and as part of their fee package will also be issued 30 million options exercisable at $0.075 within three years, subject to shareholder approval.