Ackroo acquires GGGolf
HAMILTON, Ontario, Oct. 30, 2020 (GLOBE NEWSWIRE) — 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.”About GGGolfSince 2001, GGGolf has provided high-performance software to help private, semi-private, public golf clubs and resorts manage and optimize their day-to-day operations. GGGolf offers a powerful and customizable golf management system, including web and mobile apps for online tee-time bookings across Canada. GGGolf also owns MinuteGolf.ca, Quebec’s leading online golf registration portal. For more information, visit: www.gggolf.ca.About AckrooThrough vendor and industry consolidation, Ackroo provides merchants of all sizes a data driven cloud based multi-currency marketing platform to help attract, engage and grow their customers while increasing their revenues and margins. Via a SaaS based business model Ackroo provides an in-store and online automated solution to help merchants process loyalty, gift card and promotional transactions at the point of sale, provide key administrative and marketing data, and to allow customers to access and manage their loyalty and gift card accounts. Ackroo also provides important marketing and payment services to assist their merchants with utilizing Ackroo’s technology solution and to provide a single point of contact for all of their primary merchant currencies. Ackroo is headquartered in Hamilton, Ontario, Canada. For more information, visit: www.ackroo.com.For information, please contact:The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.Forward Looking StatementsThis release contains forecasts and forward-looking statements that are not guarantees of future performance and activities and are subject to risks and uncertainties. The company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, but are not limited to: the company’s ability to raise enough capital to support the company’s go forward plans; the overall global economic environment; the impact of competition and new technologies; general market, political and economic conditions in the countries in which the company operates; projected capital expenditures and liquidity; changes in the company’s strategy; government regulations and approvals; changes in customers’ budgeting priorities; plus other factors that may arise. Any forward-looking statements in this press release are made as of the date hereof, and the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.