Artificial intelligence (AI) software provider VSBLTY has signed a definitive agreement to acquire retail media network company Shelf Nine.

Shelf Nine provides digital media and content network solutions to brands and retailers with a focus on targeted customer communications.

The company’s retail media network includes more than 4,500 screens providing digital in-store advertising across the US.

Following the transaction, VSBLTY will issue an aggregate of 12.5 million shares to the owners of Shelf Nine at the closing of the transaction, with a deemed value of $500,000.

In addition, the sellers will earn up to an additional $3.89m worth of shares subject to achieving certain revenue targets between July 2023 and June 2026.

VSBLTY co-founder and CEO Jay Hutton said: "This acquisition firmly cements VSBLTY not only as a world-leading innovative software company but as a leading-edge digital media company as well.

"Our media offering is unlike any other traditional "Out of Home" awareness product. Using our anonymous customer analytics software, we can not only confirm impressions, but we can state, who, when, where and for how long the advertisement was viewed.”

The transaction is subject to necessary consents and regulatory approvals and is expected to close by the end of this month.

Key employees of Shelf Nine have agreed to remain at the company after the acquisition.

The acquisition is part of VSBLTY's North American expansion strategy, but it will also enable Shelf Nine to expand screen deployments in existing locations.

Shelf Nine CEO Mike Manion said: "Initially, we will focus on offering more services to our existing client base, including more VSBLTY software features, along with the recently announced full panel, full video, cooler doors that can also run in transparent mode. We are very excited to find a company that we have both cultural and strategic alignment with as we enter this new growth phase for Shelf Nine."