Ackroo completes acquisition of InterActive DMS

Rhea-AI Summary

Ackroo Inc. has successfully completed its first U.S.-based acquisition by acquiring InterActive DMS for a total of $900,000. This acquisition adds over 150 clients to Ackroo's existing portfolio, boosting its AckrooPOS business. The deal comprises an initial payment of $600,000 and a final payment of $300,000 due by August 31, 2021. IDMS offers cloud-based dealer management software to independent automotive dealers across the U.S., enhancing Ackroo’s service offerings and market reach.

Positive

• Acquisition of InterActive DMS expands Ackroo's customer base by over 150 clients.
• Enhances Ackroo's service portfolio with a cloud-based dealer management system.
• Initial acquisition payment of $600,000 and a future payment of $300,000 is manageable.
• Strategic expansion into the U.S. market increases potential revenue growth.

Negative

• Total acquisition cost of $900,000 could impact cash flow if revenue from new clients does not materialize as expected.

Ackroo closes first US based acquisition

HAMILTON, Ontario, June 01, 2021 (GLOBE NEWSWIRE) -- Ackroo Inc. (the “Company” or “Ackroo”) (TSX-V: AKR) (OTC: AKRFF), a loyalty marketing, payments and point-of-sale technology and services provider, is pleased to announce that it has completed the acquisition of InterActive DMS (“IDMS”) through its’ wholly-owned subsidiary Ackroo Canada Inc. IDMS provides cloud-based and on-premise dealer management software and web solutions to independent car, motorcycle and boat dealers across the United States. Under the terms of the acquisition, Ackroo acquired all customer contracts and related IP adding over 150 clients to their AckrooPOS business. In consideration for the acquisition, the Company has paid $600,000 on closing and will make a final $300,000 payment less pre-paid adjustments on or before August 31, 2021.

About InterActive DMS
InterActive DMS provides fast, user friendly software for used car dealers, motorcycle dealers, boat dealers and finance companies that manage all aspects of inventory, sales processing, forms printing, collections, custom management reports and electronic document scanning and storage. The company has been providing software technologies for independent dealerships since 1991 cover 46 different states across the US. For more information, visit: www.interactivedms.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 in order to attract, engage and grow their customers while increasing their revenues and margins. 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 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 Ackroo's recent acquisition about?

Ackroo has acquired InterActive DMS for $900,000, adding over 150 clients to its portfolio.

How much did Ackroo pay for the InterActive DMS acquisition?

Ackroo paid an initial $600,000 and will pay an additional $300,000 by August 31, 2021.

What type of services does InterActive DMS provide?

InterActive DMS provides cloud-based dealer management software for independent automotive, motorcycle, and boat dealers.

What impact does this acquisition have on Ackroo's business?

This acquisition expands Ackroo's market presence in the U.S. and enhances its service offerings.

When was the InterActive DMS acquisition completed?

The acquisition was completed on June 1, 2021.