South Australian software company Jemsoft acquired amid ongoing Federal Court action
AN Adelaide start-up that has gained international attention for its cutting-edge software has been acquired by a publicly listed South Australian company for $900,000.
Internet of things company Xped has signed off on an agreement to purchase Jemsoft, headed by Jordan Green and Emily Rich, for $200,000 cash and $700,000 in shares.
The deal comes as Jemsoft faces Federal Court action from joint-venture partner Karen Nelson-Field.
Dr Nelson-Field, via her company, has applied to wind up Jemsoft because of what she claims is a $67,815 debt stemming from consultancy work she undertook early last year.
Dr Nelson-Field entered into the joint venture with Jemsoft in April 2016, resulting in the creation of Media Intelligence Co (MIC).
As recently as Tuesday, affidavits were filed in support of her claim, however Xped’s executive chairman Athan Lekkas said Dr Nelson-Field would continue to lead Media Intelligence Co.
Yet Dr Nelson-Field told The Advertiser today that she had no advance warning of the Xped-Jemsoft transaction.
“MIC and its directors will make a statement in due course,” she said.
Dr Nelson-Field is one of MIC’s two directors, alongside Paul Dalby.
Xped now owns 51 per cent of MIC and 100 per cent of Jemsoft, including all intellectual property and trade secrets.
Mr Lekkas said Mr Green and Ms Rich would be employed by Xped, and the cash component of the purchase would be sufficient to cover any of Jemsoft’s creditors.
The equity component involves the transfer of 50,000,000 Xped shares — valued at $700,000 at their current price of 1.4c — to the pair.
“The acquisition brings additional technical expertise and required resources to the software team within Xped while reducing external contractor expenditure,” the company said it in a statement submitted this morning.
“In addition, the experience of key Jemsoft management personnel, retained as part of the acquisition, enhances Xped’s delivery to market of current and future innovation and commercialisation projects.”
MIC, which combines Jemsoft’s computer vision and machine-learning technologies with Dr Nelson-Field’s expertise in the digital media industry, has a cornerstone contract in place with Think TV Australia. That generates $500,000 a year in licensing fees.
“The company (MIC) has a number of high-profile projects in development which will be disclosed to the market in due course,” Xped said.
Founded in 2013, Jemsoft has delivered several artificial intelligence-based projects across varying industries. It has completed work for global conglomerates, SMEs, government and various start-ups.
“With a view to revenue growth and diversification, Xped management is keen to build on Jemsoft’s previous engagements in the media sector,” Xped said.
“Through working with MIC, we can expand Xped’s current offerings through the development of Jemsoft’s leading and proprietary computer vision technology in addition to identifying and advancing the potential existing synergies between programmatic advertising and connected devices, vehicles and smart homes.
“This acquisition adds a substantial piece in Xped’s larger vision of building a complete end-to-end internet of things platform. “
“By leveraging Jemsoft’s advanced software and cloud-based expertise, Xped will implement leading artificial intelligence and consumer friendly technologies into its platform.”
Ms Nelson-Field has previously declined to comment on her court claim, other than to ask for the “sensitive nature of the process” to be respected.
Respected Silicon Valley investor Ajoy Mallik last year praised Jemsoft’s work, describing it as powerful and easy to use.
luke.griffiths@news.com.au
