On New Year’s Eve four years ago, Nexalogy CEO Claude Théoret was crossing names off of a sheet, those of his employees he had to lay off. The company had no money left, having burned through their $600,000 seed round. A messy split with a former co-founder had divided the team, and Théoret had to turn to his wife for $40,000 of her own money.
But fast forward to today, and Théoret’s troubles seem a thing of the distant past. Nexalogy has just been acquired by Datametrex AI Limited for $5.75 million.
Under the terms and conditions of the acquisition, Datametrex acquired all of the issued and outstanding common shares of Nexalogy for an aggregate purchase price of $6 million less fees, expenses and debt adjustments made at closing. As partial consideration of the purchase price, Datametrex issued 13,817,273 common shares of the Company to the sellers of Nexalogy. Under the terms and conditions of the Acquisition, $600,000 in cash is payable to the Sellers over a three year period upon Nexalogy achieving certain agreed-upon revenue milestones.
Nexalogy is a discovery engine that analyzes massive amounts of social data between words and the people who create them – on blogs, Twitter, Facebook and other sources -and reveals undiscovered risks, opportunities, and hidden intelligence. They make sense of social data to enable companies to make smart decisions. Their customers are agencies, governments and more, who want to know what the population thinks about any given topic.
Since that dire New Year’s eve four years ago, a mentor came through by financing the money the company would eventually get back from the government as part of the R&D tax credit, and Nexalogy went on to bring in $1.5 million in revenue in 2015. After being turned down by multiple VCs in the beginning, Théoret managed to bring the company to higher and higher heights.
— UpstartED inc. (@UpstartED) November 11, 2017
And after turning down multiple acquisition offers since Nexalogy started taking off, the company accepted Datametrex’s offer.
“[We said yes] because of the future they present in the sense that Datametrex is going to invest in the company afterwards. We liked the vision they had from the getgo,” Théoret told MTLinTECH.
“The deal actually came about from a fellow who approached us years and years ago. He was interested at the time in a possible merger, or also an acquisition, and of course we said no. And he just really believed in the vision all that time. He came up with another partner, which is Datametrex, and it was the right fit, so we decided to say yes.”
The deal will see Théoret and his team stay on for another three years as a wholly owned subsidiary of the publicly owned company. Operations will stay as they are in Montreal, and they will be growing the team here.
Datametrex is a Big Data company for retail, brands, and other organizations. The Company’s DataTap technology captures sales data sent from the POS to the receipt printer and scanner, and then sends it to the cloud, so it can be presented on a dashboard for key decision making.
“We are excited to welcome Claude Théoret and the Nexalogy team to Datametrex. They have developed a truly exceptional artificial intelligence (AI) solutions and business intelligence software product that, when combined with our POS technology will provide a state-of-the art data gathering and analysis platform that will be highly attractive to any number of customers seeking competitive insight, both in the private and public sectors,” said Andrew Ryu, CEO and Chairman of the Company.