Perk Labs Inc. (CSE:PERK, OTCQB:PKLBF) announced that it has inked a non-binding letter of intent to combine with tech group GetIt Technologies Inc to create a leading provider of delivery and digital ordering solutions with a presence in four major Canadian cities.
GetIt specializes in mobile marketplaces to support small to medium-sized businesses and both firms are now carrying out due diligence. The deal remains subject to approval by the board of directors, along with stock exchange and regulatory approval.
"The combination with GetIt marks the first step in our new corporate strategy of scaling up our business to become a national leader through both organic growth and tactical acquisition," Perk's CEO Jonathan Hoyles told investors in a statement.
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"GetIt has built an impressive brand with strong sales and marketing and is experiencing rapid growth in their markets," he added.
"We're excited to work together to combine their proprietary delivery technology platform with Perk's industry-leading digital dine-in and white label mobile app platform. For Perk and our shareholders, this merger is value-enhancing and represents a significant step in Perk's strategic and financial-growth plans."
GetIt CEO Ryan Hardy said: "Perk has an impressive operating history and together we will have accomplished a national footprint, an expanded technology offering, and built the value creation foundation for our users, customers, business partners and shareholders."
Under the proposed transaction, Perk will acquire 100% of the outstanding shares of GetIt pursuant to a share exchange and Perk will change its name and rebrand as "GetIt Local".
CEO of GetIt Hardy will be appointed as CEO, President, or another position of senior management, while Hoyles will remain with the company as inhouse legal counsel or another position of senior management.
Patrick Power, the chairman and president of James Edward Capital Corporation, an Ottawa-based boutique investment bank focused on emerging growth companies, is advising the parties on the merger.
Perk Labs Inc. (CSE:PERK, OTCQB:PKLBF)owns Perk Hero, the digital franchise company helping businesses transition to the digital economy.
Contact the writer at giles@proactiveinvestors.com