Peppermint Innovation acquires AI and CX expertise from XPON Technologies

Specialist financial platform developer Peppermint Innovation (ASX: PIL) continues to build on its technical strengths with the acquisition of artificial intelligence (AI) and customer experience (CX) expertise from XPON Technologies (ASX: XPN).

Through its latest strategic initiative, Peppermint is adding on XPON’s established and proven ‘application modernisation’ expertise via the acquisition of two of its wholly owned subsidiaries, Xpon Digital and Holoscribe Australia.

XPON Digital will be renamed Peppermint Intelligence (PINT) and Holoscribe Australia will be renamed Peppermint Intelligence (PIPL).

Significant contributions in a number of areas

Peppermint managing director and chief executive officer Chris Kain said the transaction will contribute significantly in areas the company is building on as well as adding immediate additional revenue opportunities.

“The acquisition of XPON’s AI & CX business division is a strategic move for Peppermint, aligning perfectly with our long-term objectives and priorities,” Mr Kain said.

“The acquisition is a massive shot in the arm for Peppermint and has the potential to really turbo charge our revenue stream growth in a short space of time.”

Significant digital transformations

Mr Kain highlighted the role the AI & CX team has played in creating significant digital transformations and integrating advanced AI capabilities into various renowned businesses in the UK.

“It generated revenues of around $5.5 million in FY23 and by acquiring this seasoned team, Peppermint is effectively leapfrogging years of development in building similar capabilities, methodologies, frameworks and outputs from scratch to focus on the company’s business going forward.”

“We plan to integrate the AI & CX team into our existing technology operations during the next 6 to 12 months. This integration will not only enhance our technological delivery capabilities but also allow us to consider cost optimisation and specialisation across our technology teams, ensuring a more efficient overall structure.”

“This will enable us to accelerate our AI transformation across loan origination, scoring, management and collections to deliver on our vision to become a leading automated lending business to the financially underserved.”

Immediate acquisition offset

Mr Kain said the existing client base of the AI & CX business division will also provide an immediate offset to the costs associated with the team.

“It also offers Peppermint the opportunity to deploy any under-utilised resources within our core business for billable work,” he said.

“This approach ensures that the acquisition is not just about adding specialised skill sets via an established and proven team, but also accelerating Peppermint’s strategic development and enhancing our service offerings in a cost-effective and timely manner.”

“Peppermint is at a pivotal point where strategic technological guidance and the ability to execute on AI & CX strategy is paramount to navigate the next phase of its growth, particularly in scaling automation and advancing the future roadmap of core technologies.”

AI & CX division growth opportunities

The AI & CX division builds and deploys modern applications utilising AI tools. It develops unique applications and then offers a managed service subscription to maintain, enhance and upgrade them.

The aim of this process is to use data and technology to create a highly personalised, financially rewarding and compelling customer experience.

The AI & CX team includes 19 highly skilled professionals across the UK, Australia and Vietnam, covering management, sales, finance, operations, delivery, customer experience and technical engineering.

Mr Kain said Peppermint plans to integrate the newly acquired expertise into its existing business to drive improvements across its own technology platform and to help optimise current technical development programs.

“The ability to enhance the uptake and efficiency of the Peppermint platform with a sophisticated CX & AI in-house team is exciting,” he said.