As the battle for online retail customers continues to intensify, Namaste Technologies (TSX-V:N)(OTC:NXTTF) said on Tuesday that it executed an agreement to acquire 100 percent of Findify AB, a Sweden-based company specializing in artificial intelligence-powered e-commerce personalization and advanced data analytics, for US$12.0 million in cash and stock.
Findify has a roster of more than 1,200 clients in 60 countries that include the likes of Nine West, Rocketdog and PLV Shoes. Findify's proprietary technology leverages user behavior to personalize online experiences in real-time, delivering a better user experience that translates to improved conversion rates.
The acquisition diversifies Namaste's ability to target legal cannabis customers and grow its patient database supported by its nine offices, over 30 websites and multiple distribution centers worldwide. Namaste's flagship property is NamasteMD.com, the first ACMPR-compliant telemedicine application in Canada.
Namaste management believes that integrating Fidify's proprietary technology with bolster the top line in both cannabis and hardware sales.
Increased earnings before interest, taxes, depreciation and amortization, better known as EBITDA, is expected in 2019 following Namaste devoting resources to expand the existing Findify platform.
Based on the value add of Findify and the core Namaste technology, the Vancouver-based medical cannabis device company foresees reaching 50,000 medical cannabis patients by the end of this year and maybe double that amount by the end of next year.
Namaste is paying for the acquisition via $2.0 million U.S. in cash and $10.0 million U.S. in Namaste common stock valued at $1.80 Canadian per share, a premium to the price of the stock as of Monday's close at $1.60 Canadian.
Early into afternoon trading, Toronto-listed shares of Namaste have climbed ahead 2.5% to $1.64 Canadian.
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