Skyfii has completed an acquisition of venue analytics start-up Blix for $300,000 in a move that sees four employees let go from the company.
According to Skyfii, the deal will boost its its presence in the automotive and retail industries, while giving it access to Blix’s CountSmart, a marketing technology tool that also manages staff rostering.
The software-as-a-service vendor will also gain access to Blix's customer portfolio, which includes Porsche, Volkswagen, Hyundai, Toyota, Country Road Group, Chanel, Swarovski and Watches of Switzerland in Australia, New Zealand, North America and Asia.
According to Blix founder Tony Loxton, four of the vendor's four full time employees will not make the transition over as part of the acquisition.
Loxton himself will remain on as an advisor to assist with the immediate sales pipeline conversion and the business transition.
By acquiring the vendor behind CountSmart, Skyfii hopes to complement its own SaaS, data and marketing analytics offerings across Europe, the Middle East, Africa and North America.
In addition to the upfront cash, the deal also contains an earn out based on Q1 FY22 contributions from both parties and an agreed new business pipeline, according to the ASX statement.
Skyfii expects the total purchase price to be less than one year’s worth of Blix’s annualised recurring revenue and forecasts a pro-forma increase of $1.1 million in its own annualised recurring revenue.
It also anticipates the deal to be earnings before interest, tax, depreciation and amortisation (EBITDA) positive after one year.
Wayne Arthur, CEO of Skyfii, added the acquisition reinforces the company’s strategic focus on delivering a mix of products, as well as its growth strategy, both organically and through acquisitions.
“This transaction further strengthens Skyfii’s position as a market leading provider of data driven venue analytics and provides further expansion into the lucrative automotive and retail sectors,” he said.
“Skyfii’s ability to deliver the Blix technology into offshore markets, specifically the high value automotive and retail market in the USA, will drive significant upside from existing revenue levels and underpins the strategic rationale for the transaction.”
The acquisition of Blix follows Skyfii reporting total revenue of $13.5 million for its 2020 financial year ending 30 June, up 44 per cent from $9.4 million. It also improved on its post-tax net loss by 15.3 per cent, decreasing to -$3.4 million.