NexTech AR Solutions Corp (CSE:NTAR) (OTCMKTS:NEXCF) revealed Monday that it has signed a binding letter of intent to acquire remote video training, live streaming software company, Jolokia, which boasts customers like Merck and Toyota CBS.
The Jolokia platform generated $1 million in Software as a Service (SaaS) revenue for 2019, the New York and Toronto-based augemented reality (AR) products company said in a statement.
NexTech AR said the transaction will be an all-stock purchase deal with an initial payment on closing of 1 million shares in its restricted stock priced at $1 each, with a 12-month earn-out if certain revenue milestones are hit of an additional $4 million in restricted stock. The company said it is currently conducting its due diligence.
With corporate meetings and events going virtual through online collaboration and web-conferencing tools, NexTech said it has developed a method to seamlessly integrate 3D photo-realistic holograms of people and products through its ARitize app.
Whether you need to host a remote conference, a major product announcement, or training sessions, NexTech said it is able to help companies “reach the heart” of their audience, with its unique AR touch.
Jolokia CEO Pete Mastin said that with the integration of NexTech’s augmented reality holograms, Jolokia’s Inferno platform is well-positioned as the world's most advanced Video Learning Experience Platform (LXP).
“Combining live broadcasting with Interactive Video, Artificial Intelligence and Holograms, corporations are now able to rapidly deliver immersive, engaging learning experiences anywhere,” Mastin said.
“We are excited to merge with NexTech AR as we believe the combination of our Inferno Platform with NexTech’s formidable tech stack will create a new generation of learning and development products that will gamify the learning experience in a way that has not been seen before,” he added.
On January 28, NexTech first announced that it had started working with Jolokia to integrate its AR features into their video learning experience platform.
Cracking the code to create an enormous opportunity
“The NexTech team quickly cracked the code on the integration of our AR into their platform, creating an enormous opportunity for both companies,” said NexTech CEO Evan Gappelberg.
“Imagine watching a training video, going to a virtual conference or webinar and being able to take what you are seeing on screen and put it in the room with you as a 3D/AR experience. Having AR seamlessly work in video training, virtual conferences or webinars provides us with competitive differentiation and a very timely addition to our AR omni-channel offerings,” he added.
The NexTech boss pointed out that with the spread of the coronavirus governments, learning institutions and corporations are encountering “a huge paradigm shift.”
“Working remotely, training and learning is creating a massive new demand which should lead to explosive adoption for this platform. We expect to see a big upside in this deal for NexTech shareholders,” said Gappelberg.
During the ongoing coronavirus pandemic many organizations are recommending – and some requiring – that their staff work from home. One in three home workers, or nearly 35% are worried about collaborating with colleagues and clients.
NexTech pointed out that contrary to what people imagined, there are plenty of tools to keep distributed teams synchronized beyond video conferencing apps like Zoom. It said the coronavirus should lead to the discovery of their products and “drive demand for the merged company’s remote-work AR tools which include AR-virtual conferences, AR-live streaming, AR-webcasting, AR-remote training.”
NexTech is one of the leaders in the rapidly growing augmented reality industry, estimated to hit $120 billion by 2022, according to Statista. The company clocked revenue of $685,000 in the month of February, 184% higher than the same month a year earlier.
NexTech also offers AR for e-commerce companies, AR in Chat, an ARitize App, AR University for education and “v-commerce,” an in-store virtual reality experience.
Contact the author Uttara Choudhury at [email protected]
Follow her on Twitter: @UttaraProactive