Nexscient, a US company specializing in AI applications and enterprise solutions, has executed a non-binding Letter of Intent (LOI) to acquire most of the assets of Flipside Digital Content Company, Inc., a provider of data labeling and digital transformation services based in the Philippines. The acquisition is a strategic move by Nexscient to expand its portfolio of AI-powered platforms and services globally.
Nexscient, which trades on the OTCQB under the symbol NXNT, is an emerging-growth company focused on building a global collaborative network of intelligent enterprise applications through internal development, acquisitions, and investments in AI, machine learning, and IoT technologies.
Under the terms of the LOI, Nexscient will acquire Flipside AI’s operating assets for a total consideration of approximately $5.94 million. This amount will be paid in a combination of cash, a convertible debenture, and Nexscient restricted common stock. Nexscient will also assume key operating liabilities and make a capital investment over the coming years to support Flipside AI’s growth.
Adding a personal connection to the Philippines, Filipino American entrepreneur Eric Manlunas, a founding partner at Wavemaker, is a founding investor and board member of Nexscient, a role he holds in a personal capacity.
As part of the transaction, Flipside AI’s President and CEO, Anthony De Luna, will join Nexscient’s executive team with a five-year employment agreement and will also be appointed to the company’s Board of Directors. Flipside AI is a data engineering company that uses human expertise and advanced technologies to provide data annotation and transformation services, helping global enterprises develop AI applications.
“We are thrilled to welcome Flipside AI into the Nexscient family,” said Fred E. Tannous, President and CEO of Nexscient, Inc. “This acquisition enhances our capabilities in data labeling and annotation—key components of the AI data training pipeline. Generating over $9.2 million in revenues over the last four years from clients all around the world, Flipside AI’s proven expertise and scalable operations in Southeast Asia will accelerate our global expansion while deepening our commitment to supporting enterprise AI across industries including healthcare, agriculture, automotive, and robotics.”
De Luna shared his perspective on the new partnership, stating, “Joining Nexscient represents an exciting new chapter for Flipside. This partnership provides the strategic capital, international platform, and executive leadership to take our AI data services business to new heights. Together, we aim to become a global force in providing transformative data solutions.”
The acquisition comes amidst significant growth projections for the global AI market. The AI data training market is expected to grow from an estimated $12.7 billion in 2024 to $92.4 billion by 2034, reflecting a compound annual growth rate (CAGR) of 22%. In parallel, worldwide spending on AI systems is forecasted to reach $632 billion by 2028, with a 29% CAGR over the 2024-2028 period.
The global data annotation tools market, which was valued at $2.02 billion in 2023, is projected to expand at a CAGR of 31.1%, reaching $23.11 billion by 2032. These trends highlight the increasing demand for high-quality data to scale AI capabilities across various industries.