Australian data management vendor Nuix is set to acquire US-based natural language processing (NLP) software vendor Topos Labs for up to US$25 million (approx. AU$34 million).
The terms of the acquisition will see an initial cost of US$5 million with up to US$18.5 million in cash payable to the seller of Topos shares, and US$1.5 million in ‘performance rights’ for Topos team members who join Nuix, payable over 30 months.
Topos, headquartered in Boston, offers an artificial intelligence (AI) driven NLP platform that identifies relevant content for risk management and compliance.
The company said the platform is early-stage, but is able to automate analysis and classification of content based on models supplied through a no-code user interface and present risk assessment of confidential, sensitive and regulated content in dashboards. The tech will boost Nuix’ unstructured data processing power.
Nuix engineering founder and chief scientist David Sitsky said, “The acquisition of Topos is an exciting evolution in Nuix's journey. Integrating the Nuix engine's ability to process vast quantities of unstructured data with the next generation NLP capabilities of Topos will be game-changing for Nuix's product portfolio.”
The completion of the deal is expected this month once closing conditions are met, at which time the Topos team will join Nuix.
Nuix chief executive Rod Vawdrey said “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’sfocus 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.”
Topos CEO Christopher Stephenson said “We are delighted to join Nuix and are excited about combining our innovative NLP platform with the Nuix platform. Along with my talented engineering and product team, I look forward to deploying Topos to further enhance Nuix’s powerful processing capabilities and to being part of a global leader in investigative analytics and intelligence software.”
Earlier this year, Nuix terminated its consulting contract with former board chairperson Tony Castagna after controversy around stock options.