Skyfii is to acquire Melbourne-based customer insights company Beonic Technologies for $1.66 million.
The data analytics and marketing services provider will pay an initial $500,000 in cash and scrip for the camera and people-counting specialist.
A deferred scrip consideration of $1.16 million will be issued 18 months after the acquisition is completed based on the renewal of recurring customer contracts in a year period.
The acquisition, which is expected to be completed on 30 June, is subject to Beonic’s top 30 customers agreeing to continue business with Skyfii, the publicly-listed company told shareholders.
Beonic currently provides real-time footfall and traffic insights to more than 300 customers in retail, public facilities, sports stadiums, airports and casinos across. Customers include Oakley Retail, Kookai, Australian National University and South Melbourne Market.
In addition, it also provides consulting and research to customers to help them convert footfall to sales.
According to Skyfii, Beonic’s offerings will complement its own real estate software-as-a-service (SaaS) business model.
The company is expected to add $1.6 million in recurring revenue to Skyfii’s bottom line, increasing its annualised recurring revenues by 30 per cent to $6.9 million.
Skyfii added that over time, it expects Beonic’s technology to be integrated with its own data analysis and marketing solution known as the ‘IO Platform’.
“We have been familiar with Beonic since our inception and it is a business that has clearly led the people-counting technology market in Australia and New Zealand for many years,” Skyfii CEO Wayne Arthur said.
He added that the deal will provide the company with an opportunity to up-sell opportunities to Beonic’s customers and sell a more diversified product into international markets.
The deal follows a number of customer wins for Skyfii, including property investment firm ISPT in November and Nandos last June.