Ackroo signs definitive agreement to acquire the assets of KESM Transaction Solutions Inc. and LoyalMark LLC
p xmlns=”http://www.w3.org/1999/xhtml”>Ackroo finalizes terms to acquire assets of Toronto based Rewards Provider
OTTAWA, ON–(Marketwired – November 15, 2017) – Ackroo Inc. (TSX:AKR) (OTC:AKRFF) (the “Company”), a gift card, loyalty and rewards technology and services provider, and KESM Transaction Solutions Inc. (“KESM”) along with their US affiliate, LoyalMark LLC (“LoyalMark”), are pleased to announce that they have signed a definitive agreement under which Ackroo will acquire the loyalty rewards business operated by KESM and LoyalMark in Canada and the US. KESM, and its affiliate LoyalMark, offer a value added gift card and loyalty rewards platform to a range of large and small retail merchant clients. The combined business will support over 4,000 locations and is projected to generate approximately $5,000,000 in revenue and between $700,000 and $900,000 in positive EBITDA in 2018 alone.
Under the terms of the acquisition, Ackroo will acquire the LoyalMark software and hardware platform and all related customer contracts. In consideration for the acquisition, the Company will issue 35,800,000 common shares and will complete two cash payments totaling $200,000 to KESM. The first $100,000 payment due within 5 days from the signing of the definitive agreement and the final $100,000 payment due on or before April 1st 2018. The common shares issued in connection with the acquisition are subject to a statutory hold period ending four months and one day after issuance. Completion of the acquisition remains subject to the approval of the TSX Venture Exchange, which is expected to close within 30 days.
“We are very excited to …