The agreement, designed to create a joint global market leader, is a cash-and-share deal that sees ioSquare, valued at €5m, take a stake in Besedo.
Besedo is a Stockholm-based content moderating solution provider with over 500 employees and 20 clients including Ebay Inc, classified and advertisements company OLX Inc. and Schibsted ASA-sites.
Its new partner, ioSquare, is a Paris company founded in 2009 that specialises in the automation of content moderation, that counts Match Group sites Match.com & Meetic amongst its clients.
ioSquare’s technology offers turnkey solutions for content moderation, social media monitoring, social CRM and document classification.
Speaking about the potential of the partnership, ioSquare CEO Maxence Bernard said: “No solution currently addresses the full spectrum of content moderation needs today.
“What we see in the market is in-house platforms or stopgap solutions that only address part of the problem.
“We are now able to offer a fully-integrated, ready-to-use platform, where human and artificial intelligence complement each other to keep scams, counterfeits and abusive content off the Internet.”
Besedo CEO Patrik Frisk said there is also a plan to IPO in Stockholm in two to five years.
He also said the deal will see the company’s revenue double in three years from the €17m in sales expected this year.
With the merger, new offices are also planned for Asia and the US, adding to its existing offices in Sweden, Colombia, Malaysia, Malta, Romania and France.
Read more about the deal here.