Dealnet Capital Corp. Makes Another Key Acquisition In 2014

DealNet Capital Corp. DLS on June 6, 2014, announced that it has entered into an agreement to acquire all of the issued and outstanding shares of Impact Mobile Inc. Company President and CEO Robert Cariglia believes this acquisition will provide an opportunity to grow DealNet’s revenue base, as the company does many programs with blue-chip clients whom he believes would have an interest in the mobile applications and messaging capabilities.

DealNet Capital Corp. (CSE: DLS) on June 6, 2014, announced that it has entered into an agreement to acquire all of the issued and outstanding shares of Impact Mobile Inc. Impact Mobile is a privately held technology and customer engagement services company that provides end-to-end mobile marketing solutions and carrier-grade messaging infrastructure to allow clients to engage their mobile customers.

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In consideration for the transaction DealNet will issue 5.5 million of its common shares to the vendors at closing, 1.5 million of which will be held in escrow to retain key executives of Impact Mobile over three years. The vendors will also receive $500,000 in cash payable over a period of 60 days from closing. 

“Impact Mobile’s business is really interesting for us because it blends well with our call centre business,” said DealNet Capital President and CEO Robert Cariglia in an interview with SmallCapPower.com, adding that it allows his company’s clients and future clients access to a complete technology based upon mobile messaging and communications through a smartphone, in addition to the traditional call centre. 

Mr. Cariglia believes this acquisition will provide an opportunity to grow DealNet’s revenue base, as the company does many programs with blue-chip clients whom he believes would have an interest in the mobile applications and messaging capabilities. These clients also tend to enter into long-term, recurring revenue contracts. He added that Impact Mobile’s existing client base would be potential customers for DealNet’s other services.    

“This platform is in production using location based services and provides demonstrable results. Everyone is thinking Mobile in our market and while are we acquiring an existing revenue stream expected to comfortably exceed $4.0 million per annum and growing, we expect some material wins that will significantly boost this figure and the value we are providing to our current and prospective customers,” DealNet Capital’s Chief Operating Officer Michael Hilmer told SmallCapPower.com 

These BPOs (Business Process Outsourcing) are the “engine that drives growth” for its One Dealer subsidiary, which services Heating, Ventilation, and Air Conditioning (HVAC) clients that generate a recurring revenue stream for DealNet. In time the One Dealer business will outgrow and outpace the growth of the BPO company but the two divisions are key to enabling each other’s growth by leveraging common platforms, technologies, resources and facilities. DealNet’s objective is to grow its dealer network to over 100 dealers by the end of 2014. In 2013, the company signed more than $30 million in contracts that will generate revenue during the next five years, and the company is working on a significantly larger funnel of opportunities with material wins expected through 2014 and 2015. 

DealNet Capital currently has 58,137,017 common shares issued and outstanding.

To learn more about DealNet Capital, you can view their initiation research report, research bulletins, analyst commentaries and CEO video interview on their SmallCapPower.com Investor Hub: Here  

About DealNet Capital: 

DealNet Capital Corp. DLS GAIMF is a public company that trades under the symbol DLS on the Canadian Securities Exchange. DealNet is a merchant banking company with a flexible investment mandate and a strategic focus on recurring revenue businesses. The Company has focused its investments towards the thriving North American business process outsourcing ("BPO") market through its wholly-owned subsidiary, OC Communications Group Inc. ("OCCGI"), as well as the consumer financing market through its wholly-owned subsidiary, One Dealer Inc. ("One Dealer"). For more details please visit here

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