Datable Technology (DAC.V), a Vancouver, British Columbia-based company which created a proprietary, mobile-based consumer marketing platform, PLATFORM3, provided via Software as a Service/SaaS model, announced today that it had inked a letter of intent (LOI) to acquire 100% ownership of Local Marketing Solutions Group (LMSG).
The LOI signed on September 23, 2022, also calls for a partnership between Datable and MoneyMailerUSA, a company affiliated with LMSG.
The partnership will allow Datable to cross sell current products and develop a version of PLATFORM3 for the U.S. small and medium sized business (SMB) market.
LMSG’s exec team estimates revenues of over $14.0 million CAD and a positive EBITDA in 2022. The combined company is expected to have pro-forma 2022 consolidated revenues of over $18.0 million and on track for a positive EBITDA in 2023.
LMSG is a holding company established in 2012 that through merger and acquisition was intended to grow a broad offering of marketing solutions for national and international brands to drive revenue through local sales and marketing channels.
LMSG has worked with larger international clients such as Lenovo, Dell and IBM along with nationally recognized brands and organizations like AT&T, US Army National Guard and John Deere.
MoneyMailerUSA has been in operation since 1979 providing both print and digital direct mail marketing for local businesses through a national network of franchisee operators. The company was ranked in Entrepreneur’s Franchise 500 list in 2018 and was listed as a World-Class Franchise by the Franchise Research Institute from 2007-2018.
The direct mail marketer currently reaches 21 million customers in over eight million homes in the United States through a monthly red, white and blue shared mail envelope and digitally, through offer-based websites, a mobile coupon app, online advertising, and social media. In 2021, Money Mailer generated approximately $41 million USD in revenues.
The LMSG acquisition will add a national sales and operations team in the U.S. as well as a complementary portfolio of marketing technology products and services.
The deal will add new large enterprise customers to Datable’s base as well as add new revenue streams.
Datable will purchase LMSG’s outstanding 287 million common shares at a deemed price of $0.05 CAD per share.
The definitive agreement is to be signed no later than November 15, 2022, and the Acquisition is to be executed no later than March 15, 2023.
Rob Craig, CEO of Datable, commented on the proposed transaction, “The acquisition of LMSG provides Datable with a national sales force, complementary products, thousands of SMB customers and the scale that facilitates access to capital and human resources. We have been looking for the right partner to leverage the value of our SaaS consumer marketing and data platform. We can increase the scale and scope of our relationships with leading consumer brands using the products and services of LMSG and Money Mailer. In addition, we are already working on a version of PLATFORM3 that fits the budgets and needs of the thousands of SMBs that LMSG brings to the combined company.”
Datable reported $248,588 in cash as of June 30, 2022 with $868,528 in revenues for the three months ending June 30, 2022 for a net and comprehensive loss of $936,754.
Currently Datable trades at $0.015 per share for a market cap of $2.43 million.
