Loop Insights Inc (CVE:MTRX) (OCTMKTS:RACMF) revealed on Wednesday that it has struck an agreement to acquire the intellectual property assets of Digital2Go Media Networks, related to global location data intelligence company Locally.io in an all-stock deal.
Vancouver, Bristish Columbia-based Loop will pay $199,500 by issuing 554,166 Loop shares at a deemed price of $0.36 per share on the date of closing the acquisition, subject to escrow conditions. Additionally, the deal will have to be greenlit by both Locally and Loop’s board and win regulatory approval.
The advanced technology company said Locally had established itself as a “premier provider” of location and human movement intelligence data. The Locally solutions help businesses connect their "physical and digital worlds" by providing mobile location insights and marketing integration capabilities. With over 50 billion location signals collected so far, Locally has helped companies like Ford, BMW, Wyndham Resorts, Calvin Klein, Kroger, Chipotle, and Napa Auto Parts access deep consumer behavioral insights.
In a nutshell, the Locally acquisition positions Loop as a leader in the online and on-premise real-time data monetization space. Loop pointed out that by combining the two companies’ technology stacks, Loop customers will benefit from “enhanced location and mobile data insights, additional targeted marketing capabilities, and new revenue streams via data monetization” with brands, marketers and large enterprises.
In addition, the coronavirus pandemic has driven demand for such location intelligence capabilities to engineer contact tracing, safety and security protocols, and reopen businesses.
Despite the pandemic, Loop has successfully rounded out two private placements, and boosted its cash position through a recent warrants exercise. Loop said it is “extremely well positioned” and is “currently exploring multiple merger and acquisition opportunities” to expand its revenue channels.
“The Locally IP acquisition is a significant strategic move as the company continues to build our Loop Data Exchange. The acquisition significantly reduces the company’s timing and cost of development,” said Loop Insights CEO Rob Anson.
“The Loop Data Exchange will enable the company to benefit from substantial revenues by monetizing Loop's current bricks-and-mortar retail data to third party e-commerce companies such as Amazon, Google, and Facebook,” he added.
Anson noted that the combination of retail transaction insights, plus location data has “a real measurable value” that will offer new and increased revenue streams for Loop when developed into a product.
“We are excited to complete this transaction, and we believe Loop shareholders will benefit from a new and very compelling asset," added Anson
As part of the deal, Locally founder and former CEO Michael Canevaro, will join Loop as the SVP of business development and partnerships.
“Mike's impressive background will help further establish Loop as one of the leading disruptive AI companies,” said Loop.
Contact the author Uttara Choudhury at [email protected]
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