Canadian fintech Paystone acquires Ackroo for $21m
Canadian fintech Paystone has signed a definitive agreement to acquire Ackroo in an all-cash transaction worth $21 million.
Paystone acquires Ackroo
Founded in 2012 and based in Ontario, Canada, Ackroo is a software provider and technology consolidator specialising in payments, point-of-sale (POS) services, gift cards, and loyalty rewards solutions. Businesses can track and manage these services through Ackroo’s cloud-based platform.
The acquisition, expected to close in February 2025, will see Paystone purchase Ackroo’s shares at $0.15 each, representing a 25% premium over Ackroo’s closing share price on 11 December.
Steve Levely, CEO of Ackroo, who will assume the role of chief operating officer (COO) at Paystone upon the deal’s closure, says that “on behalf of the board, we believed, at this stage of the business, and given the current state of the capital markets, it was in the best interest of the company to pursue this transaction”.
He adds that the move “creates a liquidity event for shareholders while positioning Ackroo’s product, team and clients to be able to benefit from a much larger private organisation”.
Levely says that Paystone, which offers complementary services to Ackroo such as loyalty programmes, payment processing, and gift card services, has been “consolidating the industry”, with the firm “acquiring direct competitors of ours like Datacandy and integrating payment and value-added software solutions”.
Alongside these acquisitions, which include its 2022 purchase of Canadian Payment Services (CPS), Paystone has raised multiple funding rounds to support its growth, including a $54.2 million private equity round and a $23.8 million investment from Crédit Mutuel Equity, both secured in 2021.
