DUB 0.00% 22.0¢ dubber corporation limited

Dubber acquires world class AI technology company Notiv● Notiv...

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    Dubber acquires world class AI technology company Notiv
    ● Notiv brings AI-driven notetaking and action items to every call and meeting
    ● Adds advanced technology capabilities in real-time transcription, artificial
    intelligence, and advanced natural language processing
    ● Adds revenue generating service to existing and expanded Dubber customer base
    ● Delivers product capabilities that enrich Dubber Foundation and broader service
    provider offering
    ● Accelerates Dubber’s AI program and expands Dubber core offerings
    ● Circa A$6.6m acquisition by way of cash and equity
    Melbourne, Australia - 20 September 2021 --- Dubber Corporation Limited (ASX: DUB) (Dubber)
    announced today that it has acquired Brisbane, Australia based technology group Notiv
    (https://www.notiv.com). Notiv is a developer of innovative cloud-native AI-based products that turn
    meetings into transcribed notes, summaries, signals, actions, and more.
    Steve McGovern, CEO, Dubber:
    "One of our fundamental beliefs is that artificial intelligence has a part to play as a standard feature of
    every call and conversation. Notiv is a significant step towards achieving this in that it has clear and
    defined use cases for everyone from individuals to the largest of enterprises. With Notiv, Dubber will
    now have the ability to automatically take notes and create action items on every call. We are confident
    that our telecommunications carrier and service provider partners will see enormous potential for
    revenue-generating value-added services for their customers at scale.
    We welcome the Notiv team to Dubber along with the AI and data science expertise they bring. We see
    the teams combining to form the core of our Dubber AI Labs for developing future AI capabilities.
    The integration of the Notiv business is accretive for both parties in that Dubber can expose the
    fantastic capability of the Notiv offering to a global customer base and the Notiv team can develop a
    continuous stream of revenue-generating services for Dubber’s addressable market.
    Dubber's overall strategy is to grow organic Annualised Recurring Revenue (ARR) while augmenting that
    growth with strategic acquisitions where possible. Acquisitions must either add accretive and
    synergistic revenue or provide substantial product and technology capability, which will drive organic
    ARR growth. The Notiv acquisition reflects that strategy perfectly, and the speed at which the parties
    DUBBER CORPORATION LIMITED | ABN 64 089 145 424 | L5, 2 Russell Street, Melbourne VIC 3000 Australia
    have executed the transaction now enables the Company to continue to pursue other identified
    opportunities."
    Notiv will be available to Dubber Foundation Partners, select service and solution providers and sold
    alongside other Dubber solutions for businesses and Government.
    Chris Raethke, Co-Founder & CEO, Notiv:
    "The Notiv team is exceptionally proud of the technology we have developed. The ability to roll out
    Notiv globally with the world's leading service providers is an unmissable opportunity. The chance to
    join the Dubber growth journey at this time and expand Dubber's AI and NLP capabilities is exciting for
    all of us. We are confident that the combination of Dubber and Notiv will deliver incredible value to
    customers, businesses and our fellow shareholders alike."
    James Slaney, COO, Dubber:
    "Dubber has over 150 global service provider network partners as well as all of the world's primary
    unified communications solutions - and is the only true native, cloud-first service of its kind.
    Our strategy has always been to use this footprint to deliver layers of value and drive associated
    revenues. Notiv suits this strategy perfectly and accelerates our existing AI program in three ways.
    First, we gain an exciting and proven product built to answer a compelling use case - making meetings
    better by automatically enabling voice data to replace or improve note taking. We believe that the
    ability to create notes, highlights and action items in every video and phone call provides invaluable use
    cases for every demographic, from individuals to large enterprises, thereby expanding Dubber's already
    large addressable market. Enhanced productivity can benefit everybody in all methods of
    communication. For example, a tradesperson on a mobile phone call could instantly capture customer
    requests and share the actions. Likewise, C-level executives could use Notiv to note and capture actions
    in a planning meeting.
    Second, we believe that the ability to deliver this capability directly from the network will be a compelling
    proposition for both existing and new service provider partners. As well as the opportunity for service
    providers to drive new services, incremental revenue and differentiation, we believe that Notiv is an
    ideal product to increase the value of our industry-first Foundation Partner program.
    Finally, Notiv will provide Dubber with a world-class team with deep expertise in AI and data science.
    Together we will accelerate our overall product roadmap and capabilities and advance our AI, digital
    signal processing and natural language processing technologies. Notiv furthers our leadership in
    capturing and transforming conversations between one person and another - and large groups of
    people in a meeting
    We are continuing to unlock the potential of AI on every end-point and enabling our service and solution
    providers to make the critical shift from selling connectivity to extracting the value in every conversation
    on their networks. They'll now be able to do that with Dubber Notiv on the same hyper-secure, scalable
    and compliant infrastructure that Dubber has already made available to over 150 service providers
    globally - including all the world’s leading UC solutions."
    Key Transaction Terms:
    ● Dubber has acquired Notiv through the purchase of all of the issued share capital of holding
    company Pinch Labs, Inc., a US corporation that wholly owns and operates the Brisbane-based
    operations and technology
    ● Aggregate consideration of approximately A$6.6 million
    ● A$5.15 million paid in cash at completion and the balance, representing 24.8% of the
    consideration, is to be satisfied by way of the issue of 386,277 Dubber fully paid ordinary shares
    at a deemed issued price of A$3.75. The shares will be issued within Dubber's existing Listing
    Rule 7.1 issue capacity
    ● Key management and employees are to stay with the business, including Chris Raethke, CoFounder & CEO and Dr Iain McCowan, Co-Founder and CTO
    ● The agreement also includes provisions customary for a transaction of this nature, including
    warranties and representations, confidentiality and non-competition/solicitation
    Strategic Rationale
    ● Accretive fundamentals. Proven application and technology with customers with strong
    product-market fit and alignment to the Dubber solution set
    ● Enriches Dubber's service and solution provider offering - and current product offerings.
    Accelerates Dubber's technology roadmap both in terms of providing Dubber with access to AI
    technologies and also adding a critical and differentiated product
    ● Furthers differentiation and value of Dubber Foundation Partner Program - and its more than
    150 service and solution provider customers worldwide
    ● Broadens Dubber's conversational intelligence offerings
    ● Dubber to accelerate the adoption of Notiv globally. Provides Notiv with critical sales and
    marketing resources to scale go-to-market capabilities
    ● Strong synergies in product approach mean technologies can be easily unified into common
    platforms with the potential to create efficiencies over time
    ● Key shareholder support. All key management shareholders retained in the business with
    incentives to continue strong performance
    DUBBER CORPORATION LIMITED | ABN 64 089 145 424 | L5, 2 Russell Street, Melbourne VIC 3000 Australia
    Financial Impact
    ● Scrip and cash consideration up-front. No further amounts payable
    ● No incremental investment in staff or technology required to achieve scaling
    ● Strong potential to enhance future revenue (or stated revenue), typical of an early-stage
    technology venture
    This ASX announcement has been approved for release to ASX by Steve McGovern, CEO & Managing
    Director.
 
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