Toronto-based Arteria AI is set to acquire certain assets of H4, a London, England-based company.
As part of the agreement, H4’s chairman and co-founder Joe Seifert will join Arteria’s team as a senior advisor. Arteria has purchased what CEO Shelby Austin called “a very long list of assets” from H4, including IP related use cases, playbooks, and technical know-how procedures of the assets.
Austin told BetaKit, “The part of H4 not acquired by Arteria will focus on the mid-market corporate segment, outside of global banking.”
Founded in 2015, H4 offers a digital platform with a mission to transform the “documentation that underpins global financial markets and legal contracts.” Its technology allows small and medium-sized businesses to manage their legal relationships all in one platform.
This pairs with Arteria AI, which helps organizations turn executed contracts into data. This, the company says, provides improved contracting visibility and compliance through advanced analytics.
“Arteria AI and H4 cover most of the top-tier of the financial services market and it made perfect sense to join forces,” Seifert said. “I’m very excited that the combination will support Arteria AI’s position as a leader in digital documentation transformation across the global banking sector.”
H4’s CEO Rob Fagg and COO Andy Byrne have agreed to a management buyout of H4, and will continue their respective roles to become co-founders of the new H4 business. Seifert will remain a minority shareholder in H4.
Arteria was first developed at professional services firm Deloitte under the name dTrax in 2020. In October, dTrax rebranded to Arteria AI and was spun out from Deloitte as an independent company. The firm is led by Austin, who previously led Deloitte’s Omnia AI business. Austin’s previous company, ATD Legal, was acquired by Deloitte in 2014.
The deal marks the company’s first acquisition and follows Arteria AI’s $13.7 million CAD ($11 million USD) Series A round of funding, representing the company’s total funding to date. Austin told BetaKit that following that round Deloitte is no longer a shareholder in Arteria AI.
The investment, originally targeted at $8 million USD, was led by Information Venture Partners and Illuminate Financial Management, with participation from Golden Ventures and StandUp Ventures.