LONDON, UK: DeepMatter Group Plc, the digital chemistry data and software company, has acquired ChemIntelligence SAS in a transaction valuing the business at up to £0.42m, a news release said.

ChemIntelligence has artificial intelligence (AI) that is used to develop chemical products and reactions faster. The business is based in Lyon, a city known as a digital centre and its strong links to France’s Chemistry Valley.

The acquisition brings intellectual property and expertise that complements the Group’s chemical reaction data, data collection platform and AI capabilities. It will also broaden Deepmatter’s technical expertise in chemical formulation, which will enable the Group to expand its offering and address a broader customer base.

The two businesses will benefit from combined sales and marketing, operations, customer support and research resources.

ChemIntelligence enables the prediction of the properties of molecules, materials and formulations, suggesting the most relevant experiments to perform in a secure, certified end-to-end cloud environment.

ChemIntelligence unaudited revenue for the financial year ended 31 December 2021 was €0.12m, with profit before tax of €0.02m. The gross assets of the Company as at 31 December 2021 were €0.12m

Mark Warne, CEO of DeepMatter, commented: “The ChemIntelligence team bring considerable expertise which will strengthen our data and AI capabilities with our current customers. It will also allow us to reach into new customer segments.

“Our vision is to combine our proprietary chemistry data with proprietary algorithms in order to transform how medicines and other chemical molecules are made, significantly improving productivity, discovery and sustainability in the field of chemistry.”

The consideration will be payable in three tranches. The initial consideration will comprise the issue to the vendor of ChemIntelligence 23,333,334 Ordinary Shares, which based on the closing share price of the Company on 27 June 2022 (being the last business day prior to the release of this announcement) has a value of £0.026 million.

A maximum of 186,666,666 additional Ordinary Shares will be issued to the Vendor depending on both the share price performance of Deepmatter and the financial performance of ChemIntelligence for the year ended 31 December 2022 and the year ended 31 December 2023.

The vendor has agreed to lock up provisions covering 24 months after the issue of Ordinary Shares via the Initial Consideration and 24 months after the earliest issue date of the Deferred Consideration. Deepmatter has the option to make any of the Consideration payable in cash.

The maximum value that Deepmatter will pay for ChemIntelligence is £0.42m.