Vancouver’s seed-stage venture capital investment firm, LX Ventures, has signed a letter of intent to acquire Vancouver-based Strutta Media Inc, a social media platform that enables brands to create, launch and manage online campaigns to drive leads, awareness and sales.
It’s a cash and stocks deal for $525,000 and about 4.6 million shares in LX Ventures. LX Ventures partner Mike Edwards is also director at Strutta Media, although it’s unknown for how long he’s played that role.
“Strutta’s team and technology platform can convert social media traffic at dramatically higher rates than traditional online advertising,” said Strutta cofounder Maura Rodgers. “The combination of Strutta’s monetization engine with Mobio’s social traffic positions LX Ventures to have the most valuable ad inventory on the Internet.”
LX Ventures is a publicly traded technology accelerator that acquires, integrates and accelerates high growth technology companies. “We are thrilled to announce this relationship with the Strutta team as they are an ideal addition to our social marketing portfolio along with Mobio,” said Edwards. “We are taking a leadership position in the social marketing space, and natural synergies exist between Strutta and Mobio, allowing both businesses to accelerate simultaneously.”
Up to an additional 9,375,000 common shares are issuable by LXV as certain milestones are met in terms of agreed monthly recurring revenue targets. Due diligence remains before the deal is complete.
Strutta said its “powerful social promotions platform is robust enough to handle the largest contest on the planet and simple enough to help you launch a sweepstakes in minutes – all while staying on brand.” Its social management dashboard provides users with the insight to help understand how participants are engaging with a brand.