Business
Nixxy Signs Letter Of Intent to Acquire Privately Held Company in the Wholesale Gifts Business
The preliminary target valuation is estimated at $6 million.The transaction would be executed simultaneously with Nixxy's pending Spin-off of CognoGroup
About this update from Nixxy, Inc.
[{"type":"text","content":"The preliminary target valuation is estimated at $6 million.The transaction would be executed simultaneously with Nixxy's pending Spin-off of CognoGroup (Remaining Legacy Assets from Recruiter)The target company's Gross Merchandise Volume is projected to reach $66 million with $10 million in net revenues for 2024, pending its successful acquisition and integration. Accretive profits are expected but subject to market conditions and other factors.NEW YORK, NY / ACCESSWIRE / October 17, 2024 / Nixxy (NASDAQ:NIXX), the \"Company,\" today announced that it signed a letter of intent to acquire a privately held wholesale gifts business as part of its ongoing strategy to utilize data to disrupt specific old-line industry sectors. Further details about the acquisition target are expected to be released as due diligence is completed, anticipated within the next seven days, but subject to timing adjustments.Strategic Acquisition ApproachNixxy's strategy includes acquiring established standalone businesses with stable operations and profitability. The company's focus remains on industries poised for digital transformation, which are ripe for digital transformation but have not yet experienced substantial technological disruption.Industry Focus: Nixxy is prioritizing sectors where technology can enhance operations and efficiencies.Acquisition Criteria: Nixxy seeks businesses with net revenues between $10 million and $100 million and gross profit margins of 40% or higher.Technology Focus: Data exploitation and utilizing practical and tangible results-oriented Artificial Intelligence platforms to decipher and analyze data and leverage it within specific industries.Leveraging Licensing Agreement With GoLogiq's Radix AI Platform: A global exclusive licensing agreement was signed with GoLogiq, Inc. to license a proprietary artificial intelligence platform named Radix AI, built in 2016 and enhanced over the years, specific to enabling small businesses to utilize AI for business processes and inventory and order management.Three-Year Plan: The overarching objective is to target an enterprise value of over $1 billion over the next 36 months, dependent on market conditions and the successful execution of our strategy.Operational Transformation: Nixxy is focused on integrating advanced technology and data-driven insights into the operations of acquir...