Ackroo completes acquisition of Simpliconnect

Rhea-AI Summary

Ackroo has successfully completed its second US acquisition, acquiring Simpliconnect, a SaaS provider specializing in client engagement for small to medium convenience stores and petroleum chains. This deal adds over 60 clients and 350 locations to Ackroo's portfolio. The acquisition involved a payment of $750,000 USD at closing, issuance of 5.625 million shares, and additional cash payments of $125,000 USD for six months starting July 1, 2023. Both companies’ executives expect significant synergies and growth potential from this integration.

Positive

• Acquisition of Simpliconnect adds over 60 clients and 350 locations, expanding market reach.
• Strategic integration expected to drive organic growth alongside inorganic growth.
• Enhancement of service offerings for clients through expanded product lineup.

Negative

• None.

Ackroo closes their second US based acquisition and their twelfth to date

HAMILTON, Ontario, Jan. 03, 2023 (GLOBE NEWSWIRE) -- Ackroo Inc. (TSX-V: AKR; OTC: AKRFF) (the “Company”), a loyalty marketing, payments and point-of-sale technology and services provider, through its' wholly-owned subsidiary Ackroo Canada Inc., is pleased to announce that it has completed the acquisition of the Simpliconnect business. Simpliconnect is a US based SaaS provider focused on driving client engagement for small to medium sized convenience store and petroleum chains, specifically focused on chains with 2-100 sites/locations. Under the terms of the acquisition, Ackroo acquired all customer contracts and related IP of Simpliconnect adding over 60 clients and 350 locations. In consideration for the acquisition, the Company has paid $750,000 USD on closing, has issued 5,625,000 common shares and will make a further six monthly cash payments of $125,000 USD commencing on July 1^st 2023. The Company is at arms-length from Simpliconnect, and no finders’ fees or commissions were paid in connection with completion of the acquisition. All common shares issued to Simpliconnect are subject to a 4 month and 1 day statutory hold period.

“We are really looking forward to integrating the Simpliconnect business in order to better optimize and expand Ackroo’s organic business,” commented Steve Levely, CEO of Ackroo. “While inorganic growth still remains the main growth driver for Ackroo we in tandem are looking to improve our organic business. Simpliconnect has done a great job growing their business throughout the US where we expect integrating our tech and teams together will result in even greater combined success for our company and our respective clients.”

“The Simpliconnect team and myself are excited to be joining forces with Ackroo to offer our clients an expanded array of products and services to meet their growing needs,” commented Brent Harms, Founder and CEO of Simpliconnect. “From the beginning of our discussions we knew teaming up with Ackroo would be a great fit for us. We expect great combined success in the years ahead.”

About Simpliconnect

Founded in 2019, Simpliconnect is located in Bloomington, Minnesota and services convenience store and petroleum brands across 35+ states across the United States. The company is a SaaS provider focused on driving client engagement for small to medium sized merchants, specifically focusing on chains with 2-100 sites/locations. Simpliconnect offers a powerful and customizable loyalty management system, including mobile apps for their merchants. For more information, visit: www.simpliconnect.com.

About Ackroo

Through vendor and industry consolidation, Ackroo provides marketing, payment and point-of-sale solutions for merchants of all sizes. Ackroo’s self-serve, data driven, cloud-based marketing platform helps merchants in-store and online process and manage loyalty, gift card and promotional transactions at the point of sale. Ackroo’s payment services provide merchants with low-cost payment processing options through some of the world’s largest payment technology and service providers. Ackroo’s hybrid management and point-of-sale solutions help manage and optimize the general operations for niche industry’s including golf clubs, automotive dealers and more. All solutions are focused on helping to consolidate, simplify and improve the merchant marketing, payments and point-of sale ecosystem for their clients. Ackroo is headquartered in Hamilton, Ontario, Canada. For more information, visit: www.ackroo.com.

For further information, please contact:

Steve Levely Chief Executive Officer | Ackroo Tel: 416-360-5619 x730 Email: slevely@ackroo.com

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 Statements
This 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.

FAQ

What is the purpose of Ackroo's acquisition of Simpliconnect?

The acquisition aims to enhance Ackroo's service offerings and expand its market reach by integrating Simpliconnect's technology and client base.

How much did Ackroo pay for the acquisition of Simpliconnect?

Ackroo paid $750,000 USD at closing, issued 5,625,000 common shares, and will make six monthly cash payments of $125,000 USD starting July 1, 2023.

What impact will the acquisition have on Ackroo's business?

The acquisition is expected to drive organic growth and improve service offerings, benefiting both Ackroo and its clients.

When was the Simpliconnect acquisition finalized?

The acquisition was completed on January 3, 2023.

What are the key benefits of the Simpliconnect acquisition for Ackroo investors?

Investors can anticipate expanded market reach, potential revenue growth, and improved client engagement services.