AUSTIN, Texas--(BUSINESS WIRE)--Perk.com Inc. (TSX: PER) (“Perk” or “the Company”), a leading cloud-based mobile rewards platform provider, today announces it has signed a share purchase agreement with Fuse Powered Inc. Pursuant to the agreement it will acquire Corona Labs Inc. (“Corona Labs”), an established platform for mobile app development. The transaction is expected to be completed within the first two weeks of December, 2015, subject to the satisfaction of customary closing conditions.
Based in Palo Alto, California, Corona Labs is an industry leading mobile software company. Corona Labs’ marquee product, is the award-winning Corona SDK which allows developers to create cross-platform applications, games and eBooks for iOS™, Android™, Kindle Fire®, and NOOK™. Boasting a community of over 300,000 developers worldwide, apps created with Corona have been downloaded more than 60 million times within the last year alone and reach over 4 million users daily.
Ted Hastings, CEO of Perk, stated: “Our vision for Perk was to prove that a rewards platform could drive retention, engagement, monetization and advertiser ROI. We started with the goal of establishing a large audience across our owned and operated mobile and web properties and have seen the results of our efforts in our growing user base, expanding advertising inventory and solid financial performance over the last year. After proving the model across our owned and operated properties, the next step in our journey was to launch our Perk Platform to the millions of apps and websites that are looking for improvements in the key metrics our rewards engine powers. We saw initial success with our 25 launch customers and then searched for a strategic path to accelerate the adoption of our rewards model that culminated with the acquisition of SuperRewards and now Corona’s mobile app development platform. Over 300,000 mobile app developers have selected the Corona development platform, creating apps that have over 60 million downloads and generate over a billion sessions per month. We can now integrate our rewards model and monetization solution into the Corona platform to make it part of the infrastructure from day one of a new app launch”.
Walter Luh, Founder and Creator of Corona, commented: “We built Corona with a vision to be the market leading cross platform mobile development platform. Combining with Perk brings new investment for the platform from an organization that started as mobile app developers and had first hand experience with the power of the Corona platform in building its own apps. We will be able to further our vision and provide our developers with an out of the box monetization solution and rewards program. Our team is excited about the partnership and believes the shared interest of the two companies will quicken the process of us reaching our long term goals.”
Under the terms of the transaction Perk will pay CAD $2.0 million (approx. $1.5 million) on closing of the transaction and will pay an additional CAD $1.0 million (approx. USD $0.8 million) over the next 12 months. Corona employs 12 people in Palo Alto and Perk expects Corona to be EBITDA positive by Q4 2016.
About Perk.com Inc.
As a leading mobile rewards platform, Perk brings together the interests of consumers, advertisers, and publishers by offering consumers rewards such as Perk Points and other digital goods. Perk Points can be redeemed for gift cards, cash, or loaded on to Perk Plastik, a re-loadable branded debit card. Perk works with brands and publishers to reach consumers through truly engaging and innovative formats using rewards as a way to achieve maximum engagement of their brands and products.
Perk currently owns and operates 15 mobile applications that allow members to earn rewards such as Perk Points and digital goods. Perk also operates numerous websites as well as AppTrailers, a leading mobile video rewards app. In addition to offering rewards to members through its own mobile applications and websites, Perk launched its Perk Platform, Appsaholic, which allows mobile and desktop publishers to utilize rewards to engage and entice users through the publisher’s own applications and websites. The Perk Platform was further expanded through the acquisition of SuperRewards, a rewards and alternative payments platform for publishers and developers .
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; the proposed used of proceeds with respect to the funds raised from the private placement; 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. These statements include but are not limited to statements regarding the intended terms of the offering and the closing of the offering. 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 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; maintenance by Perk of its agreement with Yahoo!; 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.