Infomedia to expand AI capabilities with 50% stake in German startup Intellegam
Infomedia (ASX: IFM) has moved to add state-of-the-art AI technology to its skillset with the proposed 50% acquisition of Munich-based advanced search algorithm startup Intellegam GmbH.
The Sydney-headquartered company has entered into a binding agreement to outlay approximately $10.1 million to help redefine solutions for original equipment manufacturers (OEMs), dealerships and vehicle owner customers.
Chief executive officer Jens Monsees said the partnership would accelerate Infomedia’s innovation agenda and unlock product-led growth across its global data ecosystem.
Strong synergy
Mr Monsees said the strategic move would bring together Infomedia’s deep automotive expertise and global OEM relationships with Intellegam’s generative AI technology, which is purpose-built for the automotive sector.
“With a proven turn-key product with two Chinese OEM brands and scalable intellectual property ready to go, this acquisition reinforces our commitment to delivering intelligent, data-driven solutions that power the automotive ecosystem.”
“By combining Intellegam’s innovative AI technology with our industry-leading automotive software and data solutions, we will enhance our existing product portfolio and bring new capabilities together to drive global opportunities.”
Chinese interest
Two Chinese OEM brands in Europe are already using Intellegam’s proprietary business-to-business AI to enhance repair data interpretation and customer experience.
Infomedia will integrate Intellegam’s technologies into its core product suite and this, together with its rich data assets, will enable the company to offer additional AI features and functionality to cross-sell and upsell to its existing customer base.
“Together, we will redefine solutions for OEMs, dealerships and vehicle owners – making insights smarter, operations faster and customer experiences more meaningful,” Mr Monsees said.
Full ownership option
Infomedia will pay the purchase price over two years, with an option to acquire the remaining 50% of Intellegam over five years.
This will be subject to the company achieving a number of defined financial and strategic hurdles.
Mr Monsees said all future valuations of Intellegam are linked to both revenues and profitability and capped at appropriate levels that ensure the dual objectives of providing incentives for the selling shareholders of Intellegam and financial certainty to Infomedia.