Yinda Infocomm to acquire IML intellectual property for facial recognition for 1.5M euros

Euro coinsPhoto by Leslie Shaffer

Yinda Infocomm has entered a deal with The Institute of Machina Learning GmbH (IML) to acquire its intellectual property and software for facial liveness detection, age classification and KYC (know your customer) platform, as well as contracts with key customers and resellers, for 1.5 million euros (around S$2.38 million) in cash and shares, according to a filing to SGX Sunday.

“With this acquisition, our group has further enhanced our digital identity management capabilities by adding a robust digital onboarding platform. We now have the complete framework to offer prospective clients with a full end to end E-KYC solution. This investment is in line with our strategy to emerge as a one-stop identity management and biometrics products and solutions provider,” Pierre Prunier, CEO and executive director of Yinda Infocomm, said in the statement.

Under the deal, Yinda Infocomm will subscribe for 70 percent of the enlarged share capital of GenesisPro, a Singapore-incorporated entity which will acquire the IML assets, for 1.5 million euros, the filing said, adding GenesisPro will then acquire the IML assets.

Around 550,000 euros of the consideration will be paid in cash, from internal resources, and around 950,000 euros will be will be paid via the issuance of Yinda Infocomm shares at S$0.214 each, the filing said.

Yinda Infocomm will also provide a convertible loan of 600,000 euros at 3 percent per annum to GenesisPro as working capital, with the loan potentially convertible into shares of GenesisPro, the filing said.

The founders of Austria-based IML, Adam Hegedues and Roland Trimmel, will also give Yinda Infocomm an option over the remaining hares in GenesisPro, which can be satisfied by the issuance of new Yinda Infocomm shares within two years, the filing said.

Hegedues and Trimmel will join GenesisPro as chief technology officer and chief operating officer, respectively, the filing said.

IML has completed several pilot projects with its key biometrics software for banking, mobility and online gaming companies, progressing toward a launch of the full service offering for its KYC aggregation platform, which includes API-based services for identity verification, Yinda Infocomm said. IML has agreements with resellers of its technology, including Wunder Mobility, NF Innova and Spherity, the filing said.

For 2020, IML reported a net loss after tax of 262,000 euros, the filing said.

The deal is expected to be completed before the end of the year.