Australian automotive technology firm Infomedia has agreed to acquire a 50% stake in artificial intelligence (AI) startup Intellegam for approximately A$10m ($6.36m).
The acquisition, which involves a combination of cash and Infomedia shares, will be completed over two years.
Go deeper with GlobalData
Around A$2m of the total will be invested directly into Intellegam to support the business with working capital.
Intellegam, an early-stage European AI startup, focuses on the retail automotive sector.
It has developed proprietary B2B generative AI technology, currently utilised by two Chinese OEM brands in Europe.
This technology is said to enhance repair data interpretation and customer experience, leveraging Intellegam’s AI capabilities.
Set up in March 2023, the startup has also developed a scalable intellectual property spanning the entire AI value chain, covering data capture, structuring, search, agent orchestration, customised large language models, and UI/UX integration.
The agreement allows Infomedia the option to acquire the remaining 50% of Intellegam over five years, contingent on achieving specific financial and strategic objectives.
Future valuations of Intellegam are tied to revenue and profitability, with caps to ensure incentives for Intellegam’s shareholders and financial certainty for Infomedia.
Infomedia said it will combine its automotive expertise with Intellegam’s generative AI technology to “redefine” solutions for OEMs, dealerships, and vehicle owners,
This integration, combined with Infomedia’s data assets, is expected to enable the company to offer additional AI features and functionalities, facilitating cross- and upselling to its existing customer base.
Infomedia CEO Jens Monsees said: “With a proven turn-key product in market with two Chinese OEM brands and scalable IP ready to go, this acquisition reinforces our commitment to delivering intelligent, data-driven solutions that power the automotive ecosystem.
“By combining Intellegam’s innovative AI technology with our industry-leading automotive software and data solutions, we will enhance our existing product portfolio and bring new solutions to our customers.”
Intellegam CEO Tobias Hetfleisch said: “This partnership with Infomedia marks a significant step toward tackling new challenges in the automotive sector. The automotive industry is undergoing rapid transformation, driven by connected cars, evolving customer expectations, and workforce shortages.
“Businesses are seeking smarter solutions that not only streamline operations but also enhance decision-making. By harnessing AI, companies can bridge knowledge gaps, improve efficiency, and stay ahead in a highly competitive market. By collaborating with Infomedia, we are bringing our technology where it matters most – equipping automotive businesses with AI solutions that genuinely support them through industry changes.”
The completion of the transaction is contingent upon meeting standard closing conditions.
