Ackroo $AKR Acquires Loyalty Rewards Business


Ackroo Inc., a gift card, loyalty and rewards technology and services provider, and KESM Transaction Solutions Inc. along with their US affiliate, LoyalMark LLC, are pleased to announce that they have signed a definitive agreement under which Ackroo will acquire the loyalty rewards business operated by KESM and LoyalMark in Canada and the US. KESM, and its affiliate LoyalMark, offer a value added gift card and loyalty rewards platform to a range of large and small retail merchant clients. The combined business will support over 4,000 locations and is projected to generate approximately $5,000,000 in revenue and between $700,000 and $900,000 in positive EBITDA in 2018 alone.

Under the terms of the acquisition, Ackroo will acquire the LoyalMark software and hardware platform and all related customer contracts. In consideration for the acquisition, the Company will issue 35,800,000 common shares and will complete two cash payments totaling $200,000 to KESM. The first $100,000 payment due within 5 days from the signing of the definitive agreement and the final $100,000 payment due on or before April 1st 2018. The common shares issued in connection with the acquisition are subject to a statutory hold period ending four months and one day after issuance. Completion of the acquisition remains subject to the approval of the TSX Venture Exchange, which is expected to close within 30 days.

“We are very excited to have come to final terms with the ownership team at KESM/LoyalMark. We have known for some time the value of combining the entities together and with Ackroo now firmly stabilized and structured for even greater growth it became the perfect time to consolidate so that we can scale together. We are thrilled to gain technology advancement, a great portfolio of small and large clients in both the US and Canada, as well as add key talent to the organization. Most importantly the combined companies will generate a significant amount of profit for the business allowing us to continue down our path of consolidating and simplifying the segment while putting us ahead of our goal of supporting 10,000 + locations by 2022.”

-Steve Levely, Chief Executive Officer of Ackroo

“Joining Ackroo is a great win for our customers and our staff. We have spent the last 16 years successfully building out our business in order to establish ourselves as a market leader in the segments we serve. We are very happy with what we have accomplished and have been looking for ways to take our business to the next level. The opportunity to combine with Ackroo was the answer we were looking for as Steve and his team will introduce many additional products and services to our clients and in turn Ackroo will be able to leverage our technology and team to become the dominant provider we have been striving to be. A big win for everyone involved.”

-Mike Sorbara, President of KESM/LoyalMark