Infomedia to acquire 50% of European AI startup Intellegam GmbH for €6.1 million

SYDNEY: Infomedia Ltd (ASX: IFM) has announced a binding agreement to acquire 50% of the European AI startup Intellegam GmbH for €6.1 million.

The deal aims to accelerate innovation and unlock product-led growth across Infomedia’s global data ecosystem. The partnership will combine Infomedia’s automotive expertise and global OEM relationships with Intellegam’s generative AI technology, enhancing solutions for OEMs, dealerships, and vehicle owners.

The transaction includes a cash payment spread over two years and the issuance of 2.85 million Infomedia shares, escrowed for two years. Additionally, €1.2 million will be invested in Intellegam for working capital. Infomedia has the option to acquire the remaining 50% of Intellegam over five years, contingent on achieving specific financial and strategic milestones.

Intellegam, an early-stage AI startup in the retail automotive sector, has developed a proprietary B2B generative AI technology currently used by two Chinese OEM brands in Europe. The acquisition will integrate Intellegam’s technologies into Infomedia’s core products, leveraging Infomedia’s data assets to offer new AI features to its customers.

Infomedia CEO Jens Monsees expressed enthusiasm about the partnership, emphasizing that Intellegam’s technology would bolster Infomedia’s commitment to data-driven solutions in the automotive sector. Intellegam CEO Tobias Hetfleisch highlighted the potential for AI to address challenges in the rapidly transforming automotive industry, driven by connected cars, evolving customer expectations, and workforce shortages.

The transaction is expected to close around March 1, 2025, subject to customary closing conditions. Financial advisory was provided by D23 Capital & Advisory Pty Ltd, with cross-jurisdictional legal counsel from Ashurst LLP.

Intellegam, founded in March 2023 by Marc Gehring, Tobias Hetfleisch, and Hannes Burrichter, with former BMW executive Franz Wimmer, provides automated data ingestion and updates, intuitive interaction with company information, secure cloud architecture, transparency about information sources, accuracy from curated data, and integrated processes and systems.

Infomedia will continue exploring growth opportunities to enhance its core platform, expand its customer base, and extend its geographic reach.