WISeKey is looking to enhance its Artificial Intelligence capabilities through an acquisition, announcing that it has signed a term sheet to that end with German-based Arago GmbH.
The latter company offers AI services – dubbed “Knowledge Automation” – to customers in the enterprise sector. According to WISeKey, Arago has established “a large recurring customer base” with its licensing model, and could offer “significant synergies” with WISeKey, especially in the AIoT market.
As per the terms of the companies’ agreement, the merger will occur in two steps. First, Arago will issue new shares to WISeKey that will result in a majority stake for the company. Next, subject to certain conditions, all minority shares would be would be sold by Arago shareholders.
The deal is still subject to various regulatory approvals and the approvals of WISeKey and Arago shareholders and board members.
“We are delighted to have signed this non-binding term sheet for the acquisition of Arago, which we believe, when completed will create a leading European end-to-end AIoT platform by combining cyber security, IoT and AI,” said WISeKey CEO Carlos Moreira.
Echoing the sentiment, Arago founder Hans-Christian Boos said the merger would deliver “best-of-breed cybersecurity solutions” to the companies’ joint customers.
News of the agreement comes shortly after WISeKey’s announcement last month that it had been contracted to provide microprocessors for Ensurity’s ThinC-AUTH biometric security key.