Xigem Technologies (CSE:XIGM, OTCQB:XIGMF) Corporation, a technology provider for the emerging remote economy, announced that it has filed the Business Acquisition Report (BAR) associated with its previously announced purchase of Cylix Data. It also provided an update on the status of other strategic initiatives, including the proposed acquisition of the All Source B2B software platform.
"In our first year as a publicly listed company we were very active in evaluating technologies to add to our portfolio," said Brian Kalish, co-founder and chief executive officer of Xigem.
Xigem said the Cylix business generated C$1.88 million of revenue and C$1.34 million of net income in 2020, resulting in a net profit margin of 71%.
Prior to its acquisition by Xigem, Cylix decided to pause sales during the height of the COVID-19 pandemic to focus on making significant upgrades to its technology platform.
It invested around C$1 million in the upgrade, a move that reduced revenues to C$0.62 million and net income to C$0.24 million in 2021, but also resulted in the development of “a highly differentiated product offering and an expanded market opportunity”, Xigem said.
READ: Xigem says Cylix unit advances in the US by scooping up multiple customer wins in the legal industry
“Over the past year, we have added over C$9 million in assets with Cylix alone expected to return to previous levels of annualized revenue of approximately C$1.9 million and a net margin in the 70% range," Kalish explained.
Cylix will now offer customers a best-in-class, SaaS-based, AI-driven business intelligence platform capable of helping businesses manage risks and improve their decision-making.
Xigem expects Cylix to become the unifying platform supporting the group's other proprietary technologies, the iAgent CRM software and the FOOi mobile payments app.
The company acquired the FOOi technology in an asset purchase transaction completed in August 2021. The integrated offering will provide users of Xigem's technology suite with instant access to streamlined information about current and potential customers and business partners.
Xigem also announced that it continues to work towards the completion of the proposed purchase of All Source B2B for C$1.6 million in cash, first announced on March 1, 2022.
Subject to the completion of due diligence, the execution of definitive agreements and the receipt of any regulatory approvals, the acquisition is expected to close within the next 60 days, but may be extended to 90 days, the company noted.
All Source B2B is a wholesale Software as a Service (SaaS)-based storefront that connects the front end of any company's website to their inventory, operations and CRM functions. The platform effectively automates the entire sales and marketing funnel, enabling producers to list, sell and distribute their products in wholesale quantities.
All Source B2B also provides integrated logistics capabilities, allowing customers to ship inventory directly from their warehouse while taking advantage of Less-than-Truckload (LTL) quantities.
"We have been highly selective in the transactions we've chosen to complete, and we are very pleased to have executed on the Cylix and FOOi purchases. We will continue to pursue our strategy of aggregating innovative technologies designed to enable and disrupt the remote economy, including the All Source B2B acquisition that is currently in progress," Kalish said.
Contact the author at jon.hopkins@proactiveinvestors.com