Logiq Inc. (NEO:LGIQ.AQN, OTCQX:LGIQ) said it has signed a letter of intent to acquire digital brand marketing agency, Battle Bridge Labs LLC, for US$3.25 million.
The two companies have collaborated on several projects recently, giving New York-based Logiq insight into Battle Bridge’s service offering, which includes pay-per-click management, social media marketing, funnel creation and optimization, SEO, web design, and conversion optimization.
Battle Bridge is expecting to book $3.8 million in revenue in 2022, with $1.4 million in EBITDA cash flow, according to Logiq.
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The group is a certified partner of Google, Shopify (TSX:SH., NYSE:SHOP), bing ads, ima, and has been featured in Forbes, HuffPo, and Wix.com.
"Battle Bridge is eager to scale our talent, resources, experience and customer base, and joining forces with Logiq achieves that and enables the rapid growth on which we at Battle Bridge thrive,” the group’s president Travis Phipps said in a statement.
Logiq CEO Brent Suen added that the firm has enjoyed collaborating with Battle Bridge in recent months, and “see(s) this transaction as a win-win combination that accelerates growth and opportunity for both businesses.”
Under the terms of the binding letter of intent, which is expected to be ratified in a formal deal by the end of the quarter, Logiq will acquire certain assets of Battle Bridge for total consideration of $3.25 million.
That figure is made up of $250,000 in cash and $3 million in restricted shares of Logic.
The transaction is said to be structured as an asset purchase, and certain employees of Battle Bridge will become employees of Logiq upon transaction closing.
"The big takeaway for investors is that this is just one of several potentially accretive acquisitions that we're currently considering," Suen added.
"We've analyzed an initial list of nearly 100 prospective industry targets, narrowed it down to a short list of exciting, innovative and accretive targets that we are actively exploring for a transaction. Financially, our goal for 2022 is to reach a breakeven EBITDA run rate by year-end - a goal that shapes every strategic decision."
Logiq provides data-driven, end-to-end marketing through its results solution or providing software to access data by activating campaigns across multiple channels.
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