Ackroo expands their merchant footprint and penetration of the automotive segment with asset acquisition
OTTAWA, May 27, 2015 /CNW/ - Ackroo Inc. (TSX-V: AKR) ("the Company"), a gift card, loyalty and rewards technology and services provider, and Dealer Rewards Canada, a SaaS based loyalty rewards company tailored to the automotive sector, are pleased to announce that the two companies have reached an agreement for Ackroo to acquire all of the assets of Dealer Rewards Canada. With this acquisition Ackroo also acquires the assets of Dealer Rewards Canada's affiliate Evolve Automotive Group who provide collateral and billing support for Dealer Rewards Canada customers. This strategic acquisition will further strengthen Ackroo's penetration of the rapidly growing, multi-billion dollar gift card & loyalty market and will also strengthen Ackroo's positioning in the automotive sector in Canada. Ackroo will acquire the 107 dealer locations and growing in Canada that Dealer Rewards supports and will gain exclusive licensing rights to their platform in Canada along with non-exclusive rights into the US. In consideration for the assets of Dealer Rewards Canada, and Evolve Automotive Group, Ackroo will make payments totaling $1,500,000, over an eighteen month term, and will issue 769,231 common shares. The cash payment is subject to adjustment based on performance goals for the Dealer Rewards business.
"The acquisition of Dealer Rewards Canada is an exciting win for Ackroo" said Steve Levely, chief executive officer at Ackroo. "Dealer Rewards has been a direct competitor in the automotive space for many years and have done an excellent job of evolving their product and supporting and growing their customer base. Last year we went into a partnership with Dealer Rewards to help grow each other's business in this segment with the goal being to consolidate at some point in the future. I am excited that the timing was right for both parties to have us acquire these assets in an effort to further grow this business. We will have access to supporting and promoting their platform, have their great customer base to nurture and grow and are adding significant recurring revenue to our business. An exciting win on many fronts for Ackroo and falls completely in line with our acquisition and growth strategy. "
"I am excited about this opportunity and I feel confident that Ackroo's acquisition of the Dealer Rewards Canada assets will be a seamless transition for our current client base" said Tim Doyle, President of Dealer Rewards Canada. "Our main priority is to ensure our clients are in good hands and we are certain that Ackroo will do a great job of supporting, sustaining and growing our customers. Dealer Rewards will now concentrate on improving our services, growing our US customer base and expanding into other markets. This is a great opportunity for both Ackroo and Dealer Rewards and I look forward to the 'partnerships' going forward with Steve and his team."
The acquisition, and the share issuance contemplated therein, remain subject to the final approval of the TSX Venture Exchange. All shares issued in connection with the acquisition will be subject to a statutory hold period expiring four months and one day after issuance.
About Dealer Rewards Canada
Dealer Rewards Canada is a privately held subsidiary of Dealer Rewards Inc. The Company provides a SaaS based solution platform that assists automotive dealers with increasing revenues, increasing customer loyalty and retention, reducing advertising costs concurrent with improving financial performance and improving long-term stability. The Company's focus is on providing a simple, flexible, user-friendly solution to help grow their automotive business. Dealer Rewards Inc. is headquartered in Delaware, USA. For more information, visit: www.dealerrewards.com.
Ackroo provides gift card and loyalty solutions into the $160 billion North American gift card and loyalty market. Their solutions enable businesses, merchants and business networks to increase profitability and build long-term customer relationships through customized gift card and loyalty programs. Ackroo's web-based solutions provide the power of a massively scalable software platform in a lightweight online tool that works with existing point-of-sale equipment, making it easy and affordable for businesses to launch gift card & loyalty programs that deliver immediate return on investment. Ackroo is headquartered in Ottawa, Canada. For more information, visit: www.ackroo.com.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither 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.
SOURCE Ackroo Inc.
For further information: Steve Levely, Chief Executive Officer | Ackroo, Tel: 613-599-2396 x730, Email: [email protected]