DealNet Builds out Engagement and Finance Platforms with Acquisition
DealNet Capital Corp. (“DealNet” or the “Company”) (TSX VENTURE:DLS), is pleased to announce that it has acquired Gemma Communications (“Gemma”) for consideration of up to $7 million. The purchase is structured with an initial cash payment of $2.5 million, deferred payments of up to $1.5 million and a maximum earn out of up to $3 million based on forecasted revenue targets.
Gemma is a leader in Canadian outsourced engagement and marketing solutions for the financial services and telecom sectors with operations in Toronto and Montreal. This acquisition extends DealNet’s platform by driving significant service economies of scale that progressively lowers the per transaction cost of originating and servicing its consumer finance business while expanding the operational footprint of DealNet.
As part of the share purchase, DealNet will acquire the employees, operations, systems, offices and other assets of Gemma. This acquisition is expected to double DealNet’s engagement revenue in 2016 and positions the company for future transactions in the Fintech space with significant shared servicing capabilities.
“The combined operating platform adds significant economies of scale for origination and servicing of our finance customers and dealers at a progressively lower cost and fortifies the physical and geographical market buildout for large scale national originations”, stated Mike Hilmer, CEO of DealNet.
About DealNet Capital Corp.
DealNet is an engagement enabled consumer finance company that is initially focused on home improvement finance solutions including heating ventilation and air conditioning financing and leasing. DealNet leverages its large scale customer service and engagement technology platform to attract home improvement dealers by providing front and back office services to them resulting in dealer origination growth.