NexTech AR signs LOI to acquire ecommerce business for $1.85 million CAD

NexTech AR

NexTech AR, a developer of a proprietary augmented reality (AR) advertising platform, is looking to acquire an unnamed ecommerce business for $1.85 million CAD.

Acquisitions are part of NexTech’s strategy to grow by acquiring companies that possess industry-leading technology.

According to a statement from NexTech, the company to be acquired generated $2.9 million CAD in revenue and nearly $800,000 CAD in earnings before interest, tax, depreciation, and amortization (EBITDA) last year. Toronto-based NexTech is currently conducting its due diligence, which is expected to last approximately three weeks, with an expected close of the transaction to follow.

This is the company’s third acquisition this year and it noted that these acquisitions are part of its strategy to grow through acquiring revenue generating companies that possess industry-leading technologies.

“This LOI sets the stage for our third acquisition in 2019, and upon closing, would push our ecommerce division toward a projected USD $5 million in consolidated revenue and $1 million in EBITDA for 2019,” said Evan Gappelberg, CEO of NexTech. “Since going public we have been focused on both launching our AR platforms around our three verticals, AR ecommerce, AR university, and AR live streaming, and a growth-by-acquisition strategy that we continue to execute on.”

NexTech has already closed two acquisitions this year. In January, NexTech acquired Vancouver-based AR Ecommerce, in consideration for two million common shares of NexTech. In February, the company acquired US-based Hoot, a major player in the 2D to 3D photography software industry.

NexTech, founded in 2018, brings AR to e-commerce solutions for websites, as well as AR education and event live streaming. Its AR e-commerce platform is currently integrated with Shopify, WordPress and Magento. In January, NexTech AR signed a deal to bring AR to cannabis education through learning kiosks with Cannvas Medtech Inc., a Toronto-based digital cannabis education company.

Upon closing this acquisition, NexTech plans to fast-track the launch of its new and existing AR and AI technologies, as well as advance its knowledge of customers through real-time data analysis. The company also intends to integrate a range of AR and AI capabilities on its website.

Image courtesy NexTech AR.

Isabelle Kirkwood

Isabelle Kirkwood

Writer, globetrotter, drone pilot & David Attenborough enthusiast