Sheffield software firm IntelliAM completes £5m acquisition of 53 North following Aquis listing

South Yorkshire software company IntelliAM has completed its acquisition of engineering group 53 North a day after listing on the Aquis Stock Exchange.

IntelliAM, based in Dinnington, Sheffield, specializes in AI and machine learning for the manufacturing industry, and this week the company began trading on the AQSE, raising £5.08m in the placement. IntelliAM was created to use AI models to increase operational efficiency for customers, and its vision is to harness the power of artificial intelligence through machine learning and revolutionize asset management in manufacturing.

The company takes large amounts of data from machines, processes and systems, including IOT (Internet of Things) devices. The instructions are then delivered through its IntelliAM platform to drive customer operations. The company is led by chief executive Tom Clayton, who is the founder of Sheffield maintenance engineering and asset management specialist 3 Degrees North Engineering Limited, trading as 53 North, and chairman David Richards, former CEO of WANdisco and managing partner of Yorkshire AI Labs. .

In March, it signed the terms to acquire 53 North, saying it intended to complete the transaction immediately after it was listed on the AQSE market. A stock memo announced the completion of the 53 North acquisition. It follows an agreement signed last week in which the company agreed to buy the entire issued share capital of 53 North for £5.187m.

The deal sees 50% paid in shares – and around 2.7m new ordinary shares have now been issued to the founders – with the remaining 50% of the purchase price, £2.59m, paid in cash .

On entering the market, he said: “Executives believe the IntelliAM platform enables fast, accurate and secure data assimilation to deliver valuable insights to customers that drive higher revenue and lower costs through improved productivity, increased reliability, energy savings and improved supply chain.”

It said the gross proceeds from the £5.1m fundraising would be used to pay fees and expenses related to the flotation and to pay the initial cash consideration in relation to 53 North. The balance of around £3.3m will be used to cover overheads and running costs, continue research and development to accelerate platform and software development and hire additional key staff.

53 North, meanwhile, is a provider of asset care consultancy and management strategies for manufacturers, particularly in the fast-moving consumer goods (FMCG) sector. The business has been trading for over 11 years and in 2016 achieved a turnover of £1m by winning contracts with two major FMCG companies. Since then, it has doubled sales and boasts some of the world’s leading FMCG companies as clients.

IntelliAM said: “53 North has established relationships with some of the world’s largest food and beverage companies, as well as established names in pharmaceuticals, materials and industrial manufacturing. Executives believe the IntelliAM platform could deliver increased productivity and significant cost savings for these customers, and the initial customer proof-of-value sites are already showing very positive results.”