It seems investors aren’t impressed by the company’s new acquisition …
The post Nuix (ASX:NXL) share price falls despite acquisition news appeared first on The Motley Fool Australia. –
At the time of writing, the Nuix share price is down 2.99% to $2.60.
Nuix share price lower despite US acquisition
Nuix has entered into an agreement to acquire all the shares in natural language processing (NLP) company Topos.
Topos’ software has been described as an “early-stage platform” that helps reduce workload by surfacing relevant or risky content faster.
The company’s technology is said to be “already able to automate accurate analysis and classification of complex content in documents, electronic communications, and social media”.
“NLP models can be defined directly by business users through the no-code user interface, reducing the time required to identify risk in an organisation’s data. Topos is then also able to present the risk assessment of confidential, sensitive and regulated content in user-friendly dashboards.”
Nuix highlights a number of benefits to the acquisition, citing that it can “optimise the technology to benefit its Investigations, eDiscovery and GRC (Governance, Risk and Compliance) customers, further enhancing the unstructured data processing power of the Nuix Engine.”
The initial cost of the acquisition is US$5 million on financial close which is expected in September 2021. There is the potential for a further US$20 million. This would be comprised of US$18.5 million in cash to the seller of the shares in Topos and up to US$1.5 million in performance rights payable over 30 months.
Nuix CEO Rod Vawdrey commented on the acquisition, saying:
Topos will strengthen Nuix’s product offering by helping customers get to relevant data even faster. The potential for user-friendly dashboards and for users to easily customise the software to their specific needs also reflects Nuix’s focus on empowering our customers to search through unstructured data at speed and scale. We look forward to Christopher Stephenson [Topos CEO] and his talented team joining Nuix.
Nuix share price snapshot
Nuix shares seem to have largely digested the bad news, trading mostly sideways since the beginning of June.
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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.