The unofficial details of the deal carried between the New Zealand ADD 4 I.T. LIMITED and the US-based PNC Financial Services Group are finally available
The unofficial details of the deal carried between the New Zealand ADD 4 I.T. LIMITED and the US-based PNC Financial Services Group are finally available. The banking holding, which manages $300 billion in assets, incorporated the AI fintech team into its structure, paying only publicly $30 million for a controlling stake.
The reason that forced PNC to lay out a record amount not only for New Zealand, but also for Australia, may have been the personal refusal of chief technical officer Chris Scott to abandon his colleagues and work with the new American team. Apparently, it was him, as a generator of ideas and a key specialist, that the condition was to keep the developers’ group in its entirety. The fact remains - all employees who wished to do so were transferred to similar positions in the now US division. Even Aaron Diggelmann (the ex-director of the company) received an equivalent chair and a management spot, which is not typical for American business mergers that immediately alters the administrative structure in its divisions.
ADD 4 I.T. LIMITED effectively became a division of PNC without changing its physical location. The assets and charter capital of the research group are minimal, so this is clearly a purchase of brains and patents. PNC obtained the full rights to all of the team’s intellectual property. At the same time, the head office has no apparent plans to interfere in the group’s work – the ex-director received a similar position, and CTO Chris Scott remained the lead technical specialist, only under the wing of the American company.
COPYRIGHT_WI: Published on https://washingtonindependent.com/ebv/unofficial-details-of-the-deal-carried-between-add-4-it-limited-and-pnc-financial-services-group/ by Paula M. Graham on 2019-04-10T06:25:57.759Z