Ackroo (TSX-V:AKR), a local gift card and loyalty program technology firm, says it’s purchasing the assets of a Toronto-area business that will extend the reach of the Ottawa company into more than 2,400 new locations across North America.
The transaction will see Ackroo acquire M3 Rebel's gift card and loyalty processing solution, KESM/LoyalMark. Terms were not disclosed.
Ackroo CEO Steve Levely said the deal will almost double his firm’s recurring revenues.
"The addition of M3 Rebel's KESM/LoyalMark business is a huge step forward for the company,” he said in a statement. “Most importantly, we add a significant amount of attributable margin that not only covers our current debt obligation but once normalized pushes the company into profitability.”
Ackroo sells cloud-based gift card and loyalty platforms to retail and hospitality customers. Its software-as-a-service business model generates monthly recurring revenues as well as one-time installation and service fees.
In August, Ackroo released its second-quarter results that included revenues climbing 17 per cent to $651,606 and a net loss of nearly $107,000.