- Loyalty and reward programs company Ackroo (AKR) has acquired point-of-sale software provider GGGolf through a share purchase agreement
- GGGolf operates golf management software for over 150 clients, including private, semi-private, and public golf clubs
- Ackroo’s Canadian subsidiary acquired all outstanding share capital in GGGolf in order to consolidate the company’s expansion
- Consideration for the acquisition is C$1.8 million, consisting of $1.2 million cash upon closing, and $600,000 due within 90 days
- Ackroo (AKR) is up 9.68 per cent and is currently trading for 17 cents per share
Loyalty and reward programs company Ackroo (AKR) has acquired point-of-sale software provider GGGolf through a share purchase agreement.
3916715 Canada, otherwise known as GGGolf, operates a complete golf management software solution. The business has customer contracts with over 150 Canadian clients, including private, semi-private, and public golf clubs.
Currently, GGGolf’s portfolio of clients represent over C$900,000 of annual revenues.
Ackroo’s wholly owned subsidiary, Ackroo Canada, acquired all outstanding share capital in GGGolf through an agreement with its sole shareholder. The acquisition bought not only the company, but also its software and hardware solutions and customer contracts.
Total consideration for the acquisition will come to $1.8 million, with $1.2 million of that amount paid in cash upon closing. The remaining balance of $600,000 will be due within 90 days.
In addition to this, Ackroo will also pay a one-time performance-based earn-out, up to a maximum of $200,000. This will occur on the one-year anniversary of closing, and will be based on GGGolf’s financial performance during this time.
Ackroo’s CEO, Steve Levely, said that entering the point-of-sale world and expanding its offering has been a key priority for the company.
“We chose the golf course vertical as our entry point because it stretches across both our retail and hospitality verticals and the current success of the industry itself.
“The golf course vertical has thrived during COVID like other outdoor-focused business, with GGGolf itself growing at over 10 per cent per year organically.
“With our ability to cross sell our gift card, loyalty, and payment solutions to this vertical, we are eager to accelerate that growth,” he said.
Ackroo (AKR) is up 9.68 per cent and is trading for 17 cents per share, as of 9:45am EDT.
