TIDMELIX
RNS Number : 6650M
Elixirr International PLC
18 September 2023
ELIXIRR INTERNATIONAL PLC
("Elixirr" or the "Company")
Acquisition of Responsum, Inc.
Elixirr International plc (AIM:ELIX) (together with its
subsidiaries, the "Group"), the established, global award-winning
challenger consultancy, is pleased to announce the acquisition of
the entire issued share capital and voting rights of, Responsum,
Inc. ("Responsum"), a US-headquartered firm which has developed
proprietary artificial intelligence software (the
"Acquisition").
Highlights
-- Responsum is a US-headquartered firm which has developed
proprietary Artificial Intelligence ("AI") software
-- The Group's fourth acquisition since IPO in July 2020, fifth
overall, and second in the USA - enhancing the Group's presence in
this key market
-- The Acquisition brings specialist services in emerging
technology, and large language model ("LLM") and generative AI into
the Group, complementing the Group's existing service offering and
iOLAP Inc.'s ("iOLAP") data and analytics capabilities in
particular
-- The global AI market is forecast to grow from US$208 billion
in 2023 to US$1.8 trillion by 2030 [1] . Consequently this
acquisition positions the Group to capitalise upon the growing
demand from clients for support in understanding how to implement
and benefit from AI
-- The Group has already worked closely alongside Responsum on
several client engagements prior to the acquisition, with a
partnership between Responsum and the Group announced on 3(rd)
August 2023. Since then, 40+ client opportunities have been
identified, validating the opportunity
Reasons for the Acquisition
Responsum helps organisations realise and implement solutions
using the latest in AI, machine learning and generative AI models
like GPT-4. The platform can be used across different industries by
sales teams to scale productivity, performance and data hygiene;
support teams to reduce costs and improve the customer experience;
executives and managers to streamline access to internal data and
reporting; and researchers to analyse documents and data at
scale.
The Group was already working closely with Responsum prior to
the acquisition and sees a significant opportunity to offer its
consulting services in conjunction with Responsum's AI platform to
its client base. Responsum's LLM and generative AI expertise,
combined with iOLAP's technology and data capabilities together
with Elixirr's strategic consulting expertise, will enable clients
to not only accelerate the adoption of the technology, but use it
in the most valuable ways. This acquisition also builds on
Elixirr's organic growth in the AI market, as evidenced by
Elixirr's most recent Partner hire, John Kalil, who brings previous
experience as Chief Customer Officer at Noodle.ai.
Responsum was co-founded by Steve Steinberg (CEO) and Adam
Hofmann (Chief Marketing Officer). Steve will continue to lead the
business following the Acquisition.
Consideration for the Acquisition
The Group acquired Responsum for a maximum enterprise value of
US$7.4 million. The maximum consideration is US$6.4 million which
consists of:
- Initial consideration of US$2.0m in cash;
- Initial consideration of US$3.4m to be settled through the
issue in September 2023 of 505,196 Elixirr
International plc Ordinary shares at a price of GBP5.40 per
share;
- Potential earn-out payments of up to US$1.0 million in cash
which are contingent on iOLAP Inc. and Responsum Inc. together
achieving EBIT margin targets in periods up to 31 December
2026.
The Ordinary Shares purchased pursuant to the Acquisition will
be subject to restrictions on sale for a total period of up to 4
years. The sellers have also agreed 3-year restrictive
covenants.
Admission and Total Voting Rights
As referred to above, as part of the consideration for the
Acquisition, Elixirr will issue 505,196 new Ordinary Shares. The
new Ordinary Shares will rank pari passu with the Company's
existing issued Ordinary Shares. Application will be made to the
London Stock Exchange for 505,196 new Ordinary Shares to be
admitted to trading on AIM ("Admission") and it is expected that
Admission will become effective and trading will commence at 8.00
a.m. on 22(nd) September 2023.
After Admission, the total number of Ordinary Shares in issue
will be 46,691,677 and the total number of voting rights will
therefore be 46,691,677. This figure may be used by shareholders as
the denominator for the calculations by which they will determine
if they are required to notify their interest in, or a change to
their interest in, the share capital of the Company under the FCA's
Disclosure Guidance and Transparency Rules.
Founder & CEO of Elixirr, Stephen Newton said:
"Bringing Responsum on board will allow us to engage with our
clients in a way that is very differentiated in the market -
combining strategy and execution together under one roof, empowered
by the tech of tomorrow. This acquisition enables us to be anchored
in a core capability but provide the wider strategic services
needed to make a real difference for our clients' organisations.
This is just one of many acquisitions we intend to make in areas
that add real value to the change journeys and value creation
opportunities our clients have."
Co-founder & CEO of Responsum, Steve Steinberg said:
"Generative AI presents huge opportunities for businesses.
That's exactly why we founded Responsum - to help clients unlock
the power of this technology to drive efficiency, value and
creativity. As part of Elixirr, not only can we now bring our
technical expertise to a wider range of businesses across the
globe, but also strengthen our offering through the power of the
Elixirr brands. Working together over the past year I have also
been able to see the cultural alignment between our teams - an
entrepreneurial drive in every individual and a real passion for
clients' success. Coming together will give us the best possible
opportunity to help more companies reach their full potential and
effect real change using AI."
Non-Executive Chairman of Elixirr, former President & Chief
Strategy Officer of Salesforce and former CEO of BT, Gavin
Patterson said:
"The acquisition of Responsum demonstrates Elixirr's position as
a consultancy centred around the cutting edge technology. The
potential of AI is limitless, and emerging technology such as this
will have a key impact on the consulting industry and the evolution
of services that clients will demand, providing huge growth
opportunities for Elixirr's core offering. Having the ability to
advise clients on this emerging and important market will set
Elixirr up for success and continued growth in the future."
For further Information please contact:
Elixirr International plc
Stephen Newton, CEO
Graham Busby, CFO
Public and Investor Relations contacts:
investor-relations@elixirr.com
Cavendish Capital Markets Ltd (Nominated
Adviser & Joint Broker) +44 (0) 20 7220
Christopher Raggett, Charlie Beeson (Corporate 0500
Finance),
Sunila De Silva (ECM)
Investec Bank plc (Joint Broker) +44 (0) 20 7597
Carlton Nelson, Henry Reast (Corporate Broking) 4000
About Elixirr International plc
Elixirr is an established global award-winning management
consultancy, challenging the larger consultancies by delivering
innovative and bespoke solutions to a repeat, globally-recognised
client base.
Elixirr was founded in 2009, by Stephen Newton, Graham Busby,
Ian Ferguson, Andy Curtis and Mark Goodyear, experienced business
advisors who identified a market opportunity to provide bespoke,
personal services as a 'challenger' to the traditional consultancy
businesses in the market. Elixirr guides its clients to overcome
challenges such as: future-proofing against technological
disruption; development and roll-out of innovative new
propositions, products and services; incubating new businesses;
navigating a more complex and multinational regulatory environment;
and project management and implementation of major change
programmes.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of MAR.
[1]
https://www.statista.com/statistics/1365145/artificial-intelligence-market-size/
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END
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