POSaBit Systems Corp. acquired marijuana e-commerce and compliance software assets from Hypur for as much as $7.5 million if certain benchmarks are hit.
According to a Monday news release, the cash-and-equity deal represents a “purchase price multiple” of 1.4 times Hypur’s 2022 revenue.
The deal also is the second notable purchase this year by POSaBit, a cannabis payment-solutions company based in Kirkland, Washington.
In January, POSaBit paid $4 million in cash for the software business of Akerna Corp., cementing the Denver-based company’s exodus from the marijuana industry amid mounting headwinds.
The acquired assets of Scottsdale, Arizona-based Hypur, which last year generated about $5.3 million in revenue and $1.3 million in gross profits, include:
- Hypur Pay, an ACH e-commerce and mobile payment solution.
- Hypur Comply, a compliance technology for financial institutions serving the cannabis industry.
- Hypur’s PIN debit merchant processing solution.
”This acquisition marks a significant milestone … as we continue to expand our footprint and capabilities in the rapidly growing cannabis payments and point-of-sale market,” POSaBit CEO and co-founder Ryan Hamlin said in a statement.
According to the release, other benefits of the Hypur acquisition include:
- Creating a one-stop shop for payment and bank-compliance needs for cannabis retailers, processors, cultivators, distributors and financial-service providers.
- Adding an extensive network of banking relationships, as well as nine employees, including Hypur CEO Michael Sinnwell Jr.
- Adding 150-plus merchant locations, with a pipeline of 60 more expected in the next 90 days.
- Android and iOS apps with more than 165,000 account profiles.
- Stronger B2B capabilities, including invoicing and ACH payments, positioning POSaBit to provide merchant services to cultivation operators.