SYDNEY, AUSTRALIA: Cirralto Limited has signed a binding Share Sale Agreement to acquire 100% of the issued capital of software development house, Greenshoots Technology Pty Ltd, with an expected completion date of 30 September 2021.
The consideration for the acquisition is 100% scrip based, with Cirralto agreeing to issue in aggregate 24,193,548 fully paid ordinary shares in the capital of Cirralto to the shareholders of Greenshoots, which brings total aggregate value equal to approximately $1.5 million.
Greenshoots is a multi-lingual, multi-tenanted eCommerce platform that will complete and complement Cirralto’s retail Intellectual Property (IP) and enable improvements in go-to-market strategy with direct to market brands, retailers and retail service providers.
Beyond the eCommerce functionality the acquisition will also deliver critical components to the Spenda product suite.
The addition of the development resources is expected to increase the speed and quality of the software the Company can release while also providing time-saving benefits to Cirralto through the direct ownership of unique IP necessary for the growth and increased functionality of the Spenda product suite.
Commenting on the acquisition, Cirralto’s CEO, Adrian Floate, said, “The acquisition of Greenshoots into the Cirralto product portfolio will enable us to immediately service businesses looking for an integrated, powerful eCommerce solution.
“Unlike other eCommerce providers, the integration behind the Greenshoots solution means we can essentially ‘plugin and play’ the service with our existing Spenda solution. The benefit to customers is huge, not only are they able to sell online, take payment and transact smoothly, but the capabilities of Greenshoots IP mean we are able to push out our inside sales feature and delivery partnership channels at an accelerated pace.”
Greenshoots Founders Stuart Freer, Raghav Jain and Janardan Singh said, “We are incredibly pleased to be joining the Cirralto family and look forward to the synergies that Spenda and Greenshoots can bring to customers as Spenda eCommerce.”
Australians are set to spend over $11 billion on Christmas presents this year – an average of $726 each. Of this, an average of 48% of gifts are likely to be purchased online, with 58% of people saying they’ll purchase more or significantly more items online than they did last year.
eCommerce sales are up 31% in April 2020 to $5.2m, when compared to the average in 2019. The national average for online purchases in 2019 was 17.2%, which grew to 41% in 20202.
Globally, eCommerce sales are predicted to reach $4.2T in FY223. With the use of “Buy Now, Pay Later” (BNPL) as a payment option growing 166% in March 2021 (YoY in America).
Cirralto intends to leverage this increased trend in BNPL usage with the growth in eCommerce to provide easy access to on-demand lending to the B2C market.
Cirralto Limited (ASX:CRO) is a transaction services business supplying industries with a broad range of B2B payment services, digital trading software and integrated solutions.