Hamilton-based iF innovator Ackroo has finalized the acquisition of Simpliconnect for a total consideration of $2 million USD. The payment solutions startup absorbs 60 clients in 350 locations in the process.
This article was originally published by Michael Edgar for Betakit on January 4, 2023.
Hamilton-based marketing, payment, and point-of-sale (POS) solutions company Ackroo has finalized the acquisition of Minnesota-based client engagement startup Simpliconnect for a total consideration of $2 million USD ($2,705,530 CAD).
The considerations have been satisfied by $750,000 USD paid on closing along with the issuance of 5,625,000 common shares worth $0.12 CAD per share. Additionally, Ackroo will begin making six monthly cash payments of $125,000 USD to Simpliconect beginning on July 1st, 2023.
“Our tech and teams together will result in even greater combined success for our company.”
– Steve Levely,
Ackroo CEO
Simpliconnect marks Ackroo’s 12th acquisition to date, signalling the company’s desire to use acquisitions to accelerate organic growth. The payment solutions startup will absorb 60 clients in 350 locations as part of the Simpliconnect acquisition.
“Simpliconnect has done a great job growing their business throughout the US,” said Ackroo CEO Steve Levely. “Our tech and teams together will result in even greater combined success for our company.”
The POS solutions market experienced a decline during the COVID-19 pandemic. However, the industry is now expected to grow from $25.24 billion USD in 2022 to $70.75 billion USD by 2029, according to a report by Fortune Business Insights.
Founded in 2000, Ackroo offers marketing, payment, and POS services to merchants of all sizes. Its cloud-based marketing platform helps merchants track loyalty, promotions, and gift cards at the point of sale.
Simpliconnect drives client engagement for small to medium-sized convenience and petrol brands across the US with a mobile loyalty management system. Founded in 2019, it now generates approximately $1 million in annual revenues according to a release from Ackroo. Both Ackroo Simpliconnect believe their tech and business will fit seamlessly together.
