03:25 PM EST, 03/05/2024 (MT Newswires) -- Ackroo Inc. ( AKRFF ) , a gift card, loyalty marketing, payments and point-of-sale technology consolidator and services provider, provided an update on their recent acquisition of Simpliconnect. On January 1 2023, Ackroo ( AKRFF ) acquired Simpliconnect, a US based loyalty marketing provider focused on the convenience and petroleum merchant segment..

Ackroo ( AKRFF ) has streamlined operations from a vendor management, client pricing, support and employee standpoint resulting in operational efficiencies and profitability. Ackroo ( AKRFF ) is also building product parity between the Simpliconnect platform and their Ackroo Anywhere platform and has begun migrating clients over to Ackroo's ( AKRFF ) core marketing product. This is expected to be completed by the end of April. Once complete the legacy platform will be decommissioned.

The company has also achieved financial gain from the acquisition in its first year of contribution, delivering $1.23 million of annual revenue and adding $202,698 of net income representing a 16% profit margin. As of January 1st, 2024, Ackroo ( AKRFF ) is now generating a 60% + profit margin from this business which they expect will continue through migration and beyond.

From a ROIC standpoint, the final consideration from Ackroo ( AKRFF ) was just under $1.8 million plus 5.63 million shares after an amendment was made in the spring of 2023, with Ackroo ( AKRFF ) expecting to see the cash investment paid back within 39 months of closing based on the past and current margins being generated.

Over the last year, Ackroo ( AKRFF ) has also bought back 6.1 million shares via a Normal Course Issuer Bid at an average price of $0.087 per share effectively cancelling out the shares issued to Simpliconnect earlier in the year.