Canadian gift card company Ackroo has agreed to acquire certain assets of Mobi724’s digital marketing and business intelligence (DMBI) business I.Q. 7/24 (iQ724).
As per the terms of the contracts, Ackroo will pay a total of $2.8m to acquire the targeted accounts.
Go deeper with GlobalData
The iQ724 business generated revenue of $1.9m in 2018 in automotive, retail and hospitality industries. It will continue to service certain globally strategic accounts even after the deal.
The loyalty business is anticipated to add $700k-$1M of positive EBITDA contribution to Ackroo and expand its marketing platform and service offering.
Under the terms of the agreement, Ackroo will take over certain assets of the iQ724 software platform with a two-year licensing agreement, related customer and hardware contracts.
Ackroo CEO Steve Levely said: “We first partnered with IQ724 in 2016 to help support our enterprise merchant growth goals while allowing iQ724 to leverage Ackroo to better support their SMB merchant base.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“iQ724 was initially a marketing services agency that evolved into technology whereas Ackroo began as a technology company that is evolving into a marketing services provider.
“It is because of these initial approaches that Ackroo has always catered well to the SMB market while iQ724 to the enterprise merchant market. As the two companies have evolved, there has been much more overlap in our offerings and so the timing was right to combine the companies.
“Since the initial partnership, iQ724 was acquired by Mobi724 in order to enhance their core business of card-linked offers and rewards. Now that the IQ724 platform has been enhanced to support Mobi724’s needs, they were open to divesting of the management of the clients in an effort to better focus on their core business.”
Mobi724 CEO Marcel Vienneau said: “When Mobi724 acquired iQ724, our main goal was the integration of iQ724’s sophisticated business intelligence and loyalty solutions platform with Mobi724’s all-in-one ecosystem.
“Having completed the integration and all of its enhancements, Mobi724 can now offer its clients – payment cards issuers, and major accounts – a truly unique and comprehensive platform.”
The completion of this agreement is subject to closing conditions and any required regulatory and shareholder approval.
