Special report: Intelligent workplaces just got an intuitive boost with ASX-listed LiveTiles announcing it is acquiring Hyperfish, an Artificial Intelligence developer closely aligned with Microsoft.

The acquisition sees two of the fastest-growing software companies in the Microsoft ecosystem combine with highly complementary products and rapid customer growth trajectories.

Together they service a customer base of more than 500 organisations.

Hyperfish, which bills itself as a next-generation employee profile and directory management software company, will be snapped up by LiveTiles as the latter looks to extend its intelligent workplace platform.

The agreement will see LiveTiles (ASX:LVT) acquire 100 per cent of the issued capital of Hyperfish.

The consideration for the acquisition will be entirely in LiveTiles stock and include performance metrics in FY19.

At first, Hyperfish will continue to be offered as a stand-alone software solution but will be integrated into LiveTiles’ existing products over time.

LiveTiles will issue 8.7 million shares valued at about $3.7 million (escrowed for 12 months) plus two earn-out tranches designed to ensure the Hyperfish co-founders drive its ongoing success.

LiveTiles chief product officer Simon Tyrrell demonstrates the product. Pic: LiveTiles
LiveTiles chief product officer Simon Tyrrell demonstrates the product. Pic: LiveTiles

If performance goals are met, the total number of shares issued for the acquisition will be 21.35 million, equating to $8.9 million.

Hyperfish’s software solution helps organisations streamline their employee directory, ensuring directory and profile information is always complete and up-to-date.

Using AI and bot technology — similar to LiveTiles Bots — Hyperfish automatically identifies missing or incorrect employee directory information and starts a conversation with staff to collect and validate the data.

This is where the Microsoft connection comes in. Hyperfish’s software automatically updates employee directory records within the Microsoft Azure and Office 365 cloud platforms.

The company was founded by the co-founder of Nintex Brian Cook and ex-Microsoft executive Chris Johnson. The pair will join LiveTiles to drive Hyperfish’s growth and advance LiveTiles’ leading intelligent workplace platform.

Since a paid version of Hyperfish was launched early in 2017, the company has secured 33 customers and grown revenue to $400,000 under an annual subscription model.

Their run-rate operating expenses sit at about $US600,000 per quarter.

Brian Cook, Hyperfish CEO and co-founder, said: “Our combination with LiveTiles is a great opportunity to take the Hyperfish vision to the next level and build a truly impactful and unique global software company.”

LiveTiles CEO and co-founder Karl Redenbach said: “Hyperfish has an incredibly talented team led by Brian Cook, a successful tech entrepreneur with a proven track record in building highly successful global businesses.

“Hyperfish will enable us to extend the LiveTiles intelligent workplace platform deliver exciting new capabilities to current and future LiveTiles customers.”

This special report is brought to you by LiveTiles.

This advice has been prepared without taking into account your objectives, financial situation or needs. You should, therefore, consider the appropriateness of the advice, in light of your own objectives, financial situation or needs, before acting on the advice.

If this advice relates to the acquisition, or possible acquisition, of a particular financial product, the recipient should obtain a disclosure document, a Product Disclosure Statement or an offer document (PDS) relating to the product and consider the PDS before making any decision about whether to acquire the product.