Cannabis software firm Akerna inks $17 million acquisition

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Denver-based cannabis technology company Akerna signed an agreement to acquire a marijuana business management software firm for $17 million in cash and stock.

Akerna will pay $4 million in cash and $13 million in stock to acquire 365 Cannabis with a potential earnout of $8 million, according to a news release.

The $17 million acquisition price works out to 2.1 times 365 Cannabis’ past 12 months of revenue.

The acquisition is expected to close by year-end and is subject to customary closing conditions.

Akerna said in the release that the acquisition of 365 Cannabis, which is headquartered in Las Vegas, will provide Microsoft capabilities to enhance Akerna’s enterprise resource planning platform, which includes financial and tax compliance software.

Cannabis 365 has more than 85 clients, including such U.S. and Canadian cannabis producers and retailers as PharmaCann, Revolution, Sundial Growers and Kiaro.

Akerna’s holdings include MJ Freeway, a seed-to-sale software platform.

Akerna, which trades on Nasdaq under the ticker symbol KERN, was down about 4% as of midday trading Tuesday.