March 17, 2020 – NexTech AR Solutions, a provider of augmented reality solutions for eCommerce and AR learning applications, has announced that it has signed a binding Letter Of Intent to acquire remote video training and live streaming software company, Jolokia. According to NexTech, Jolokia’s customers include Merck, Toyota, CBS, Polycom and others, and the Jolokia platform generated USD $1 million in SaaS revenue for 2019.
The transaction will be an all stock purchase with an initial payment upon closing of 1 million shares in restricted stock priced at USD $1 (CAD $1.38) with a 12 month earn out if certain revenue milestones are hit of an additional $4 million in restricted stock. NexTech states that it is currently conducting its due diligence with an expectation of a closing in the near future.
With corporate meetings and events going virtual through online collaboration and web conferencing tools, NexTech has developed a method to seamlessly integrate 3D photo realistic holograms of people and products to these virtual events through it’s ARitize App. Whether customers need to host a full-featured conference, a keynote for a major product announcement, remote training sessions, or a virtual booth to welcome partners, investors, and advocates, NexTech states that it is able to help reach the audiences with its AR offering.
Pete Mastin, CEO of Jolokia said: “With the integration of NexTech’s augmented reality holograms, our 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.” He continued, “We are very 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 & Development products that will gamify the learning experience in a way that has not been seen before.”
Evan Gappelberg, CEO of NexTech commented: “On January 28th we announced that we had started working with the team at Jolokia to integrate our AR into their Video Learning Experience Platform. The Nextech team quickly cracked the code on the integration of our AR into their platform, creating an enormous opportunity for both companies”.
Gappelberg added, “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. With the spread of the Coronavirus, all governments, Learning Institutions and Corporations are forcing a huge paradigm shift in society to remote work, training and learning creating 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”.
Many global companies have rolled out mandatory work-from-home policies amid the spread of COVID-19, resulting in more employees working from home. With the Global coronavirus pandemic disrupting all large gatherings, demand for remote training is “surging”, according to NexTech. The company anticipates that this increased demand will result in further adoption of its remote-work AR tools which include: AR-virtual conferences, AR-live streaming, AR-webcasting, and AR-remote training. Furthermore, NexTech added that COVID-19 has resulted in an increased demand for Jolokia’s software, as schools close, and business travel, conferences and leisure travel are all cancelled.
Image credit: NexTech AR Solutions/Jolokia
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Sam is the Founder and Managing Editor of Auganix. With a background in research and report writing, he has been covering XR industry news for the past seven years.