RE:Ackroo announces the acquisition of Dealer Rewards CanadaI don't think the market is properly recognizing the significance of this acquisition. I think investors are just seeing that they paid ~$1.8M (factoring in the issued shares) for an additional 107 locations. However, based on the previous acquisition and by looking into Dealer Rewards, it's possible to make some well-founded assumptions. Dealer Rewards's clients are dealerships, therefore those locations are very high volume. Furthermore, the company only offers loyalty solutions which brings in much more revenue per location. I see this acquisition adding $0.9M-$1.2M in total revenue (a mix of recurring and one-time revenue).
When the numbers and additional details are given in the Q2 MD&A, investors will better understand the situation.
I will be updating my write-up when further information is made public.
Matthew