Florida-based marijuana grower and retailer Stem Holdings signed a deal to acquire California-headquartered cannabis delivery company Driven Deliveries, creating what Stem calls “the first vertically integrated cannabis company with an integrated Delivery as a Service platform.”
The all-stock transaction will be worth approximately 41.3 million Canadian dollars ($31.1 million), according to a news release issued Tuesday.
Under terms of the deal, shareholders of Driven Deliveries, based in Los Angeles, will receive one share of Stem for each share of Driven.
The combined company will be called Driven by Stem and operate out of Stem’s current offices in Boca Raton.
Stem said it expects the acquisition to be immediately accretive to its earnings and anticipates synergies in sales, operations and selling, general and administrative expenses.
“We will apply Driven Deliveries’ technology, footprint and distribution capability to all markets, and leverage our own licenses and retail dispensaries to service more consumers in every state in which we operate,” Stem CEO Adam Berk said in the release.
Berk is the former CEO of Osmio, which now operates as food delivery service Grubhub.
He will continue on as CEO of Driven by Stem. Current Driven Deliveries CEO Christian Schenk has resigned.
Driven by Stem projects revenues of $75 million in 2021 with a gross profit of $27 million.
Driven by Stem will trade under Stem’s current listings.