Digital promotions technology provider Eagle Eye Solutions Group (LON: EYE) is acquiring France-based Untie Nots, which provides promotion and gamification SaaS products to retailers for up to €38.8m.
Eagle Eye has built up its market positions in the UK, North America and Australia. Untie Nots will give it a strong position in France and enhance it in other markets. The deal also adds gamification and additional analytics expertise. Untie Nots will be able to sell Eagle Eye products.
Unitie Nots has developed AI software that personalises promotions and the founder are set to stay at least until the end of 2024. It has recently won two contracts in North America.
Revenues increased from €1.6m to €3.02m in 2021, but the business remains loss-making. There is currently debt of €500,000.
The initial payment is €9.1m in cash and €5.9m in shares at 555p each. A placing will raise £7m at 555p a share and the rest of the cash will come from existing net cash of £3.6m. There are undrawn credit facilities of £5m.
The deferred payments of up to €23.8m will depend on achieving revenue targets in 2022, 2023 and 2024, which equates to annual growth of 60%, as well as achievement of a minimum EBITDA margin.
The latest full year figures form Eagle Eye show an improved pre-tax profit of £2.5m and there are recurring revenues and new contracts that should enable further profit growth in the coming years.
The Eagle Eye share price fell 10p to 567.5p.