Loop Insights Inc (CVE:MTRX) (OTCQB:RACMF) has signed a definitive agreement to acquire Mediahelden GmbH, a Munich, Germany-based digital wallet and mobile marketing company that operates under the name Passcreator, for $2 million in cash and stock.
Passcreator’s mobile wallet pass is built on Android and iOS Wallet pass technology, and through the acquisition, Loop will vertically integrate its wallet pass capabilities and gain access to Passcreator’s clients, which include BMW and Mercedes Benz.
Loop will pay US$123,000 in cash, along with 1.3 million common shares of stock at a price of US$1.1349 (C$1.4277) per share.
READ: Loop Insights enters into five-store pilot with Canadian grocer Sobeys to deliver digital receipts via its Wallet Pass technology
The deal is intended to take Loop’s technology stack to the next level by both incorporating the Passcreator team and its software in anticipation of its next phase of larger business developments, the company said.
Specifically, Loop noted that significant interest garnered in the US, UK and European markets dictates its plan to secure and manage the development of Passcreator’s Wallet Pass platform, which is able to deploy rapidly and at scale in up to 40 languages.
“In our December 2020 review, I stated that Loop was very confident that significant developments would take place in 2021 that would see Loop grow by several magnitudes over 2020,” Loop CEO Rob Anson said. “With the first quarter of 2021 now complete, with some major pilot tests announced and a major pipeline shaping up, we have good reason to believe in the potential for significant developments in the UK, Europe and globally. As such, our Passcreator acquisition is perfect in terms of both timing and fit with Loop’s technology to close on upcoming major developments.”
Anson expects Passcreator to bring in “significant revenue” in 2021 and beyond.
“We believe that the merging of two very proven technology companies will greatly accelerate further development and synergistic growth,” Passcreator CEO Mario Juhnke said. “Furthermore, the bridging of the markets of both Loop and Passcreator will serve to improve market resiliency and bolster confidence in the future.”
Loop will also make secured limited recourse loans to certain former shareholders of Passcreator in the aggregate amount of up to US$510,000, the company said. Additionally, upon closing, Loop will also grant an aggregate of 1 million incentive stock options to certain officers of Passcreator.
Contact Andrew Kessel at [email protected]
Follow him on Twitter @andrew_kessel
Story by ProactiveInvestors
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