Ackroo acquires point-of-sale software provider GGGolf to continue expansion of growing product and service offering
Ackroo Inc. (TSX-V: AKR; OTC: AKRFF) (the “Company”), a loyalty marketing, gift card and payments technology and services provider, is pleased to announce that its wholly-owned subsidiary, Ackroo Canada Inc., has acquired all of the outstanding share capital of 3916715 Canada Inc. (“GGGolf”) pursuant to a definitive share purchase agreement entered into with GGGolf and its sole shareholder (the “Vendor”). GGGolf operates a complete golf management software for private, semi-private and public golf clubs. Under the terms of the acquisition, the Company has acquired all of the outstanding share capital of GGGolf, which includes it’s software and hardware solutions and all related customer contracts representing over 150 clients across Canada and over $900,000 of annual revenues. The transaction represents Ackroo’s tenth acquisition to date and the Company’s first point-of-sale software purchase further positioning the Company as both a vendor and industry consolidator in the growing merchant marketing, payments and point-of sale ecosystem.
Total consideration for the acquisition was $1,800,000, which was satisfied through a cash payment of $1,200,000 on closing and will be followed by an additional $600,000 due within 90 days. In addition to the purchase price, the Company will also pay a one-time performance based earn-out, up to a maximum of $200,000, on the 12-month anniversary of closing based on the financial performance of GGGolf during this time period. The Company is at arms-length from GGGolf and the Vendor, and no finders’ fees or commissions were paid in connection with completion of the acquisition.
“Expanding into point-of-sale is a key priority for Ackroo,” commented Steve Levely, CEO of Ackroo. “As we look to continue to consolidate vendors for our clients expanding the breadth of our offering has been a primary focus. After adding marketing, data and most recently payment solutions for our customers the next logical step for us is to fully step into the point-of-sale world as well. We chose the golf course vertical as our entry point because it stretches across both our retail and hospitality verticals and the current success of the industry itself. The golf course vertical has thrived during Covid like other outdoor focused business with GGGolf itself growing at over 10% per year organically. With our ability to cross sell our gift card, loyalty and payment solutions to this vertical we are eager to accelerate that growth.”