- Software company IXUP (IXU) has entered a binding share purchase agreement to acquire sports tech company, DataPOWA, for up to $12 million
- The two companies previously combined their solutions which resulted in deploying the POWA Index 2.0 product
- IXUP will pay $3.25 million in cash and over 47.8 million shares upfront, with additional consideration dependent on DataPOWA’s future performance
- The company believes the acquisition could create a sports sponsorship valuation platform for the sports market
- IXUP ended the day down 5.56 per cent, trading at 17 cents per share
IXUP (IXU) has entered a binding share purchase agreement to acquire sports tech company, DataPOWA.
IXUP and DataPOWA have previously pooled their resources in various initiatives. These collaborations resulted in the recent deployment of the POWA Index 2.0 product, which combines IXUP’s secure data collection engine and DataPOWA’s artificial intelligence-driven sports sponsorship asset valuation tool.
Under the deal, IXUP will acquire 100 per cent of the U.K.-based company for a maximum purchase price of $12 million, on a cash-free and debt-free basis.
Upfront consideration for the acquisition is expected to be provided as soon as possible after shareholder approval for the transaction is given. IXUP will make a cash payment of $3.25 million to the vendors, and will also issue 47,872,340 new fully paid ordinary shares.
Based on the deemed issue price of 9.4 cents per share at the time that acquisition discussions commenced, the shares are worth approximately $4.5 million. The shares will be subject to voluntary escrow for 12 months from the transaction’s completion.
Depending on the future performance of DataPOWA’s business in achieving revenue milestones, IXUP may also pay up to $4.25 million in deferred consideration. If the milestones are met, the deferred payment will be issued as new, fully paid ordinary shares in two instalments.
IXUP’s Managing Director, Marcus Gracey, called the acquisition a logical next step, and the first of many strategic opportunities.
“It quickly became clear while working with DataPOWA, that we had a strong cultural alignment and that a combination of IXUP’s Secure Data Engine and DataPOWA’s POWA index could create a market-leading sports sponsorship valuation platform with valuable deep analytics capabilities, creating a new compelling product within the sports market,” he said.
“I am encouraged the sports market has already confirmed our view – including via the marquee FIFA Confederation Concacaf’s adoption of the POWA Index 2.0 – and we are working towards further commercial agreements in the near term to further verify demand and market appetite,” he added.
IXUP ended the day down 5.56 per cent, trading at 17 cents per share at market close.