The company has acquired all intellectual property including patents, trademarks and know-how for consideration of A$1 million.
This acquisition furthers SenSen’s ambition to grow in the US, following the City of Las Vegas contract win in 2020 and other US customers engaged in POCs, as well as SenSen being admitted to the OTCQB market, headquartered in the US.
There was a strong response from investors with shares up more than 27% to A$0.14, a new 12-month high.
“Fantastic addition to product portfolio”
SenSen CEO Subhash Challa said: “This is a very strategic acquisition for SenSen.
“Snap’s Force Multiplier Product and the background IP will be a fantastic augmentation to the SenSen product portfolio.
“Adding the ability to seamlessly track objects in a multi-camera environment will be a major benefit for many of SenSen’s existing customers providing additional functionality, and to build on our value proposition for new customers in the security and surveillance world.
“I would like to thank the board and senior staff of Snap including the founding member Dr Henry Detmold for their willingness to explore a common pathway at a time when many sectors of the economy are reluctant to look too far ahead.
“At SenSen we will continue to scrutinise strategic acquisitions presented to us if they align with our global growth ambitions for the AI platform we have built and continue to further develop.”
Force Multiplier product
Snap’s lead product Force Multiplier (FMX) integrates with the world’s leading video management software systems including Milestone, Bosch, Honeywell, Genetec to name a few and has been installed on several sites in the US, Australia, Asia, Middle East and Europe.
Snap products and solutions are highly relevant to all prospective customers and market segments where there is a need to track persons of interest over large-scale camera networks in real-time or forensically.
Current and potential customers include airports, high-security prisons, shopping centres, universities and casinos.
SenSen has been independently providing solutions into the same market segments for many years and upselling the additional SNAP functionality will be appreciated by SenSen’s existing customer base and generate additional revenue streams to SenSen.
By combining Snap’s AI-powered multi-camera networked tracking technology with SenSen’s automated multi-object tracking technology within individual camera views, SenSen plans to release a ground-breaking new product - SenTRACK- which will have the revolutionary new capability to automatically detect and track people throughout a large-scale video surveillance network.
This is expected to deliver significant new business insights to SenSen’s current and prospective customers.
Potential applications of the integrated technology include anti-money laundering applications within casinos, path-to-purchase of customers within retail stores and COVID-19 related tag and trace applications within facilities.
SenTRACK will also deliver high accuracy people occupancy metrics within buildings, which is a key work-place health and safety requirement for all businesses in the post-COVID-19 world, simply by tapping into the existing CCTV networks.
Additionally, SenSen has already identified new international customers seeking the integrated SenSen/Snap solution and anticipates that the combined offering will allow SenSen to become a market leader in the large-scale video surveillance industry.
Snap development team additions
Snap’s highly skilled AI software engineers will join SenSen’s world-leading technical team, including Dr Henry Detmold, an acknowledged leader in large-scale network video surveillance solutions.
Snap chairman Geoff Thomas said: “After many years of development, Snap is very happy to find a partner in SenSen to take the product forward into multiple global markets and realise the potential for the IP across multiple market verticals.
“We are also very pleased to note that the Snap development team has joined SenSen.”
The consideration for the transaction is SNS equity priced at the last seven business days VWAP of 10.12 cents per share, being a total of 9,881,423 shares.
SenSen share capital dilution pre-issue is around 2.2%, and 50% of the consideration shares are escrowed for six months from the completion date (December 1, 2020) with the remaining 50% of the consideration shares escrowed for 12 months from the completion date.
Grannus Securities acted as commercial advisor to SenSen.