Akerna To Acquire 365 Cannabis For $17M

·1 min read
  • Akerna Corp (NASDAQ: KERN) has agreed to acquire 365 Cannabis, a cannabis business management software system built on Microsoft Corp's (NASDAQ: MSFT) Dynamics 365 Business Central, in a $17 million deal at 2.1x LTM revenue.

  • The consideration includes $4 million in cash and $13 million stock with a potential earnout of $8 million. The acquisition is expected to close in Q4.

  • 365 Cannabis' 85+ clients will gain access to Akerna's Compliance Gateway, feature-rich reporting, MJ Retail POS, and the recently launched Akerna Connect.

  • The acquisition of 365 Cannabis adds Microsoft capabilities, further strengthening Akerna's cannabis-compliant ERP system offering. Akerna has also partnered with other providers for integrated financials and tax planning.

  • Akerna held cash and equivalents of .29 million as of June 30, 2021.

  • Price Action: KERN shares are trading higher by 8.46% at $3.59 during the premarket session on Tuesday.

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