Nanoveu (ASX:NVU) agreed to acquire system-on-a-chip semiconductor company Embedded AI Systems.

The consideration comprises the issue of AU$5 million in ordinary shares and 83.3 million performance rights, according to a Tuesday filing with the Australian bourse.

The transaction allows Nanoveu to "directly tap into the growing demand for edge artificial intelligence applications in wearables, smart home systems, and Internet of Things devices," the technology company said.

Also, Nanoveu transitioned non-executive chair David Pevcic into an executive chair role, effective immediately.

The company also raised AU$600,000 via the private placement of 24 million shares at AU$0.025 apiece for the development of Embedded AI Systems, integration with EyeFly3D, and working capital.

Nanoveu shares surged 114% in recent Tuesday trade and earlier hit a 3.5-year high.

Price (AUD): $0.05, Change: $+0.024, Percent Change: +114.29%