Australian IT firm Appen gets merger bid from US-based Innodata

By Thomson Reuters Mar 12, 2024 | 3:15 AM

(Reuters) – Australia’s software firm Appen said on Tuesday it received a proposal from U.S.-based digital data solutions firm Innodata for a potential merger of the two companies in an all-stock deal.

Appen said the proposal offers A$0.70 worth of Innodata shares per share of the company, though it did not diclose any other details on the deal.

Appen and Innodata did not immediately reply to Reuters’ requests for confirmation of the deal’s value.

Appen said it was seeking to understand the potential value that the proposed bid implies for its shareholders, adding, it had agreed to a limited exchange of confidential information on a non-exclusive basis.

Innodata is one of the several parties who have proposed transactions via strategic investments, or sale of part or all of Appen’s businesses, the Australian company said.

The sale comes as Appen, one of the world’s largest artificial intelligence training providers, suffered a blow from difficult operating environemnt and weak global demand, forcing the company to undertake cost-saving initiatives in recent months.

(Reporting by Poonam Behura; Editing by Rashmi Aich)