Ackroo to acquire GiftFly’s eGift Card Business

Ackroo signs definitive agreement to acquire digital gift card business from U.S. based payments company

HAMILTON, Ontario, Nov. 28, 2023 (GLOBE NEWSWIRE) -- Ackroo Inc. (TSX-V: AKR; OTC: AKRFF) (the “Company”), a loyalty marketing, payments and point-of-sale technology and services provider, is pleased to announce that it has signed a definitive asset purchase agreement, dated November 23^rd, 2023, with GiftFly.com LLC (“GiftFly”). GiftFly is an international payments company based in the U.S. with an eGift card product for small to medium sized merchants. GiftFly has boarded over 18,000 merchants on their product since inception with over 4,000 active merchants across North America using the platform today. The transaction will almost double the number of locations Ackroo will support, represents Ackroo’s thirteenth acquisition to date, and is expected to close on November 30^th, 2023.

“As we continue to refocus our acquisition strategy back into the loyalty marketing, gift card and payments space we are very excited to be adding the merchants and the supporting IP from GiftFly’s eGift card business,” commented Steve Levely, CEO of Ackroo. “One of the strengths of our core AckrooMKTG platform is our gift card offering so the opportunity to further enhance our platform with some of the unique features offered by GiftFly is an exciting and relatively simple advancement for Ackroo. We are also eager to continue to expand into the U.S. market which this acquisition affords. For the GiftFly merchants they will gain the many additional products and services Ackroo has in the loyalty marketing, gift card and payment space plus a much larger product and support team to better cater to their growing needs. Add in that we will effectively double the merchant locations we support, and this is a very exciting win for all involved.”

Total consideration for the acquisition will be (US)$750,000, which will be satisfied through a cash payment of (US)$350,000 on closing and a further four monthly cash payments of (US)$100,000 commencing on January 5, 2024 with the fourth and final payment subject to adjustment based on revenue achieved from the GiftFly gift card business. The Company is at arms-length from GiftFly, and no finders’ fees or commissions will be paid in connection with completion of the acquisition. Completion of the acquisition remains subject to the satisfaction of customary closing conditions.