The Dubber Corp Ltd (ASX: DUB) share price is off to a strong start, up 3% in early morning trade.
Below, we take a look at the cloud platform service provider's acquisition announcement that looks to be driving this morning's action.
What acquisition did Dubber announce?
Dubber's share price is rising after the company reported it has acquired technology group Notiv.
Notiv, based in Brisbane, develops "cloud-native AI-based products" able to do transcripts of meetings, as well as provide summaries, signals and actions.
Dubber acquired Notiv from United States company Pinch Labs Inc for a total price of $6.6 million. The company will pay $5.15 million in cash once the deal is complete. The remaining $1.15 million will be paid via the issue of 386,277 Dubber shares at an issue price of $3.75.
According to the announcement, Notiv's key management and employees will stay on following the transaction. This includes the company's 2 co-founders, Chris Raethke and Iain McCowan.
Commenting on the acquisition, Dubber's CEO Steve McGovern said:
One of our fundamental beliefs is that artificial intelligence has a part to play as a standard feature of every call and conversation… With Notiv, Dubber will now have the ability to automatically take notes and create action items on every call. We are confident that our telecommunications carrier and service provider partners will see enormous potential for revenue-generating value-added services for their customers at scale…
The integration of the Notiv business is accretive for both parties in that Dubber can expose the fantastic capability of the Notiv offering to a global customer base and the Notiv team can develop a continuous stream of revenue-generating services for Dubber's addressable market.
Dubber share price snapshot
The Dubber share price has been a standout performer in 2021, up 150% year-to-date. That compares to a gain of 10% posted by the All Ordinaries Index (ASX: XAO).
Over the past month, Dubber shares have gained 16%.
