AUSTIN, Texas--(BUSINESS WIRE)--Perk.com Inc. (TSX: PER) (“Perk” or the “Company”), a leading cloud-based mobile rewards platform provider, today announced it has completed the acquisition of AppRedeem, Inc. (“AppRedeem”), an innovator in rewarded video for mobile devices with its longstanding mobile rewards platform, pursuant to an all stock transaction. Under the terms of the transaction, stockholders of AppRedeem received an aggregate of 831,601 Perk common shares. Based on the closing share price on September 18, 2015, this transaction is valued at C$3,326,404. In the 12 month period ending June 30, 2015, AppRedeem generated revenue of approximately US $3.2 million. Based on historical and forecasted results, Perk believes that the acquisition will immediately add incremental earnings beginning in the fourth quarter 2015.
- Enhanced scale and increased user base in the mobile rewards space
- Acquisition of a leading brand in the mobile rewards ecosystem
- Additional revenue and cost synergies are expected to enhance accretion to Perk shareholders
- Inclusion of accomplished highly skilled technical professionals to Perk’s management team
Based in San Francisco and founded in 2010, AppRedeem (www.appredeem.com) is an advertising platform for mobile app discovery, branding and monetization. AppRedeem’s leading mobile application, AppTrailers allows AppRedeem members to receive points for watching trailers of the latest apps as well as popular videos. Members are then able to redeem points using Appredeem’s “Real Rewards” system in exchange for gift cards or cash. As of June 30, 2015, there have been over 7.9 million installations of AppRedeem apps and its users have redeemed more than $7 million in Real Rewards paid.
Ted Hastings, Chief Executive Officer of Perk, stated: “We are excited to complete this transaction, and to be working with the team at AppRedeem. At a time when the fundraising landscape has a high degree of uncertainty, we have been afforded an opportunity as a public company to utilize stock as payment for this transaction; this has served to expedite our growth strategy without impacting our capital resources. This acquisition is consistent with the objectives we have stated of increasing our user base and advertising inventory as well as expanding our suite of products, which will assist in increasing CPM and fill rate over time. These types of transactions are a win for our three focus groups – our advertisers get exposure to more daily active users viewing their ads through to completion, our customer base gets access to a broader set of rewards and apps and our shareholders get an accretive deal.”
Sheffield Nolan, Founder and Chief Executive Officer of AppRedeem, commented: “The mobile rewards space is rapidly expanding and we have grown AppRedeem to the point where we are ready to broaden our reach. We considered going the course alone but with Perk, as an initial competitor of our business with a similar vision focused on complementary markets and publicly traded, it made sense to join forces and create a stronger company. We believe this transaction will further accelerate our growth and are proud to be a part of the Perk team.”
About Perk.com Inc.
Perk provides a rewards platform targeting consumers primarily by rewards for people's every day mobile and internet activities. Perk offers Perk Points, a digital reward which can be redeemed for gift cards and cash. Members can earn Perk Points through a wide variety of activities including shopping, watching videos, and playing social games.
Perk currently owns and operates 12 mobile applications allowing members to earn Perk Points. Perk also operates numerous owned websites as well as AppTrailers, a leading mobile video rewards app. In addition to offering Perk Points through its own mobile applications and websites, Perk launched its Appsaholic Software Development Kit which allows mobile and desktop publishers to reward their users with rewards, such as gift cards, for engaging with the publisher's applications and websites.
Additional information about Perk can be found at its corporate website: ir.perk.com.
Cautionary Statement Regarding Forward Looking Statements
This press release contains forward-looking statements, including with respect to Perk’s business, Perk’s ability to grow its active consumer base; user and advertiser engagement; Perk’s ability to establish new marketing partnerships; Perk’s ability to expand into new markets; and Perk’s ability to acquire and integrate new businesses and technologies. Such forward-looking statements reflect Perk’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used herein, the words "anticipate", "believe", "estimate", "upcoming", "plan", "target", "intend" and "expect" and similar expressions, as they relate to Perk or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to Perk and are subject to a number of risks, uncertainties, and other factors that could cause Perk’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements, including, but not limited to: maintenance by Perk of relationships with advertising network providers and partners; successful development of the “Perk” brand; Perk’s ability to keep up with rapid technology developments in Perk’s markets; Perk’s ability to avoid defects in products and services delivered by Perk; Perk’s ability to attract app and website developers to its Appsaholic SDK; and Perk’s ability to successfully enter new business areas and geographic markets; success of new products developed by Perk and Perk’s ability to retain key members of its management team.