Datable Technology Corp., the developer of the proprietary, SaaS-based Consumer Lifecycle and Data Management Platform known as PLATFORM3, is set to sell its Software-as-a-Service (SaaS) business to Local Marketing Solutions Group, Inc. (LMSG).

Under the Letter of Intent (LOI), Local Marketing Solutions Group will acquire all material assets and liabilities related to Datable Technology’s SaaS business, awarding the latter with a 15% equity stake in the former post-transaction.

The LOI indicates the pre-transaction value of Local Marketing Solutions Group at $19.7 million, approximately equal to its projected 2023 revenues. Consequently, Datable Technology’s 15% ownership stake in Local Marketing Solutions Group will carry an estimated value of about $3.5 million post-transaction.

Rob Craig — Datable Technology CEO said: “We’ve invested significant time and capital into building our SaaS platform and proving its value to some of the largest enterprises in the U.S. through the monetization of first-party consumer data. The time has come to find a partner with the capacity to further leverage our consumer marketing and data platform.

“By becoming part of LMSG, we see a clear path to scalability and the opportunity to enhance the value we provide to our customers, shareholders, and debenture holders.”

With this acquisition, Local Marketing Solutions Group is projected to achieve 2023 consolidated revenues of approximately $24 million, coupled with positive EBITDA. This will enhance LMSG’s marketing technology suite by introducing high-margin recurring revenues and new enterprise customers from Datable Technology’s SaaS business.

Local Marketing Solutions Group, a provider of marketing solutions and technology, caters to national and international brands, driving revenue through local sales and marketing channels across the US The company’s customer base includes some of the largest global companies as well as small and medium-sized businesses (SMBs) throughout the US.

Datable Technology and Local Marketing Solutions Group had signed a previous LOI on September 23, 2022, where the former intended to acquire the latter for a base value of C$14,350,000. This acquisition was to be accomplished by offering Local Marketing Solutions Group’s owners 287,000,000 common shares of Datable Technology at a deemed price of C$0.05 per share. However, due to unfavorable market conditions for small-cap tech companies, both parties mutually decided to terminate the previous LOI on March 17, 2023.

Both firms believe this combination will foster organic growth by enabling improved service to their customers through the provision of expanded products and services delivered by a unified US sales team. This belief led to the signing of a cross-selling agreement earlier this year, with both parties actively working together to market integrated products and services to their combined customer base.

Al Croke — Local Marketing Solutions Group President and CEO said: “Datable’s solutions and team mesh with our product and service strategy perfectly and will provide greater opportunities to expand the solution sets with our current clients and will open doors to additional client brand relationships.

“After navigating through the hurdles posed by COVID, LMSG is set to return to our growth-through-acquisition strategy, and that begins with integrating Datable’s SaaS platform, team, and clientele into our operations. We do see the appeal of becoming a public entity, but for now, we believe that the prospects for access to capital and valuation are more advantageous in the private sector.”

  Al Croke, Canada, Datable Technology, Local Marketing Solutions Group, Rob Craig