Artificial intelligence and e-commerce marketing company OpenDNA (ASX: OPN) has moved to expand its digital marketing capabilities after signing an agreement to acquire Blackglass from IncentiaPay (ASX: INP).
Under the agreement, OpenDNA will acquire all the issued shares in Sydney-based Blackglass, a wholly owned subsidiary of IncentiaPay.
OpenDNA will pay $300,000 for the acquisition of the digital strategy and tactics company, funding the purchase out of existing cash reserves.
The firm is confident the acquisition will deliver immediate additional revenue from existing Blackglass clients, while providing complementary and synergistic digital marketing capabilities given the purchase aligns with the operations of its subsidiary, CHOOSE Digital.
OpenDNA also expects the Blackglass purchase to provide an extended potential customer base for its artificial intelligence platform.
“The acquisition is seen by the company’s board as being complementary to the company’s existing business strategy and model in that it provides a significant low-cost opportunity to expand and develop the company’s existing businesses,” OpenDNA chief executive officer Bryan Carr said.
“It further facilitates the deployment of the OpenDNA Artificial Intelligence System into new markets and customer sectors.”
Driving further value creation
OpenDNA believes the purchase, which is subject to further due diligence, will extend its capability to service the online marketing and customer acquisition requirements of its RooLife e-commerce business.
The company completed the acquisition of China-based e-commerce and mobile payments company – RooLife towards the end of 2018, strengthening its ability to deliver an AI-powered product with access to the growing Chinese market.
In recent months, OpenDNA has agreed to sell and market Better Nature products in China via RooLife, while also inking a deal with NNM Services to promote the pharmaceutical wholesale company’s products in China.
Commenting on the relatively low-risk purchase of Blackglass, OpenDNA chairman Grant Pestell said it would enable the company to drive further value creation.
“The company is now well placed to accelerate its revenue growth as presented to shareholders at the AGM in November 2018,” he said.
Mr Pestell also highlighted the company’s solid understanding of the Blackglass business and its potential, given OpenDNA’s current executive sales director, Warren Barry, was the founder of Blackglass back in 2005.
“We believe Blackglass can be used to significantly grow the revenue base across all business units of the OpenDNA Group,” he added.