Ackroo, a provider of loyalty and rewards technology and services, has brokered a deal to purchase some assets of BNA Smart Payment Systems, a value-added electronic payments provider.
Ackroo executed this agreement through its wholly-owned subsidiary Ackroo Canada.
As per the terms of the agreement, Ackroo Canada has snapped up BNA’s software and hardware payment solutions.
The deal also encompasses all related customer contracts, which represent up to $40,000 of monthly recurring revenue. Its customers include automotive, retail, hospitality and petroleum merchants.
Ackroo has made a payment of $200,000 in consideration for the buyout.
The agreement also requires Ackroo to pay 100% of the net residual payment commissions from BNA customers for the first 12 months.
Furthermore, it will pay BNA 50% of the net residual payment commissions for the next 12 months.
Ackroo CEO Steve Levely said: “We have been in discussions with a number of payment providers however BNA became the ideal portfolio for us to acquire first as their customer base stretches across all four merchant verticals Ackroo supports and their current primary acquiring partner is Global Payments, one of Ackroo’s two acquiring partners, allowing for a smooth transition to Ackroo.
“BNA is also the past sister company to KESM/LoyalMark whom we acquired in late 2017, so we are very familiar with both the leadership team and many of the clients, making this the obvious first payment related acquisition we do.”
BNA Smart Payments president Matt Moore said: “After selling the KESM/LoyalMark business to Ackroo a couple years ago we had plans to also divest of the payments business to Ackroo when they were ready.
“The payments industry continues to consolidate with software companies like Ackroo as the need for an omni-channel offering becomes critical for merchants. Now that they have fully launched AckrooPay we are excited for our customers to begin leveraging the breadth of offering Ackroo has to offer.”