Namaste Technologies Inc. (TSXV:N) agreed to acquire Swedish artificial intelligence company Findify AB
SmallCapPower | May 9, 2018: Namaste Technologies Inc. (TSXV:N) announced recently that it has agreed to acquire all the issued and outstanding shares of Findify AB, a Swedish firm, in a cash-and-stock deal valued at US$12 million. Findify is a global leader in artificial intelligence (AI) and machine learning, offering e-commerce personalization, delivering solutions such as personalized search, recommendations, and advanced data analytics. The AI firm’s has 1200 clients spread across 60 countries, including Nine West, PLV Shoes and Rocketdog.
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Namaste Technologies management hopes the integration of Findify’s proprietary technology will enhance the monetization and boost revenue growth in both cannabis and hardware sales. Furthermore, Namaste plans to allocate resources for expansion of Findify’s existing platform and anticipates increased EBITDA by 2019 year-end. In addition to that, Namaste Technologies is hopeful of a rise in patient growth through its wholly-owned subsidiary and Canada’s first fully-compliant online patient portal, NamasteMD Inc. Through implementation of Findify’s technology in applications of patient acquisition, conversion rates, order value and customer retention, Namaste Technologies expects to reach 50,000 medical cannabis patients by 2018 year-end and up to 100,000 by 2019 year-end.
Namaste Technologies will acquire Findify in exchange for – US$2 million in cash to be paid upon the closing date of the transaction and US$10 million to be paid in common shares of Namaste at a mutually agreed price of $1.80 per common share. After the acquisition is completed, key designated employees of Findify will continue to be with the firm.
Findify’s platform, used by leading e-commerce websites, including Namaste, employs proprietary real-time machine learning algorithms to build unique user profiles, and deliver a personalized experience for each user. Acquiring Findify adds value to Namaste Technologies in applications related to the online retail of medical cannabis. Offering personalized experience to medical cannabis patients is a unique opportunity, which is recognized by Namaste Technologies. The acquisition of Findify will strengthen Namaste’s objective of becoming the global leader in cannabis technology solutions by further expanding its innovative e-commerce platform and enhancing the user experience for cannabis patients globally.
Additionally, Findify’s acquisition creates a new revenue stream for Namaste Technologies in the field of artificial intelligence and data analytics. Namaste anticipates rapid expansion of its technology licensing business.
Also, on May 7, 2018, Namaste Technologies announced the signing an exclusive drop-shipping supply agreement with Ample Organics Inc., Canada’s leading seed-to-sale software platform, currently used by many Canadian medical cannabis producers. Namaste will supply Ample Organics customers with access to its full range of vaporizers and accessories through API integration, as the exclusive drop-shipping supplier to Ample Organics. Namaste Technologies currently trades at market capitalization of $437.37 million with price-to-book multiple of 17.39x.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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