Xigem Technologies (CSE:XIGM, OTCQB:XIGMF) Corporation said it has closed the acquisition of EAFdigital Inc, purchasing substantially all of the assets of EchoDigital from EAF Group of Companies for an aggregate consideration of $892,450.
EchoDigital is a SaaS-based platform using its proprietary AI to seamlessly generate leads from traditional sources. The EchoDigital AI assesses and qualifies the lead and determines the lead's psychological aptitude then matching it with the most suitable and qualified customer service/sales representative, as also determined by the AI, to complete the sale. EchoDigital is designed to optimize sales funnels and enhance conversion rates while reducing risk and spending on customer acquisition.
"We expect EchoDigital to make an immediate financial contribution based on its current business, with potential growth from marketing the platform within the automotive sales space as well as other sectors," Brian Kalish, co-founder and CEO of Xigem, said in a statement.
READ: Xigem Technologies signs definitive agreement to acquire AI-powered automotive shopping platform EchoDigital
"EchoDigital can be a source of competitive advantage for companies who wish to make use of the most advanced technology to efficiently and effectively increase their sales," he added.
EchoDigital currently supports the EAF GROUP, a vertically integrated automobile sales, leasing, servicing, finance and warranty provider. On the basis of unaudited financial results for the calendar year ended December 31, 2022, as well as the terms of a management agreement executed by the parties, EchoDigital is projecting receiving gross royalties of approximately $8.2 million, resulting in net royalty revenues of approximately $0.3 million, on EAF GROUP sales for the calendar year ending December 31, 2023.
EchoDigital will be operated as a wholly-owned subsidiary of Xigem. Under a royalty and service-based management agreement executed by the parties, EAF GROUP will provide management services relating to EchoDigital, while EchoDigital will continue to support the sales efforts of the EAF GROUP, for at least 10 years.
Established in Toronto, Ontario, Xigem is positioned to become a leading technology provider for the emerging near trillion-dollar remote economy, with software capable of improving the capacity, productivity, and overall remote operations for businesses, consumers, and other organizations.
Contact the author at jon.hopkins@proactiveinvestors.com