DeepMatter Group PLC on Tuesday said it has bought Lyon, France-based artificial intelligence company ChemIntelligence SAS.

Shares in the Glasgow, Scotland-based digital chemistry data company were up 3.1% to 0.11 pence each in London on Tuesday midday.

The transaction values ChemIntelligence at up to £420,000, to be paid in three tranches.

Initially, DeepMatter will issue 23.3 million shares to ChemIntelligence, worth £26,000. An additional 186.7 million additional shares maximum will be issued to ChemIntelligence, dependent on both the share price performance of DeepMatter and the financial performance of ChemIntelligence in 2022 and 2023.

DeepMatter also has the option to pay in cash.

DeepMatter said that the acquisition will bring intellectual property and expertise which complement its chemical reaction data, data collection platform and AI capabilities. Further, it will broaden the company’s expertise in chemical formulation, which will enable the group to expand its offering, it added.

ChemIntelligence recorded pretax profit of €20,000 in 2021 on revenue of €120,000.

Chief Executive Mark Warne said: ‘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.’

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