Accredited Solutions Executes Indication of Interest ( IOI ) to Acquire a Leading Fintech Company Focused on B2B Distribution of e-Gift Cards

Rhea-AI Summary

Accredited Solutions, Inc. (OTC: ASII) has executed an Indication of Interest (IOI) to acquire a leading US-based B2B distributor of third-party e-gift cards. The target company generated $33.7 million in sales in 2023 and is on track for a 2024 revenue run-rate of $42.5 million, with profitability on a net income basis. This potential acquisition aligns with Accredited Solutions' growth strategy, offering synergistic opportunities to accelerate growth through capital injection and resource sharing.

The company plans to integrate marketing and administrative functions, leverage cross-selling opportunities, and develop new products and APIs for fintech integration and international market entry. CEO Eduardo Brito expressed enthusiasm for the acquisition's potential to drive significant growth and value. The transaction is expected to progress to a binding Letter of Intent (LOI) once an audit is completed, with Accredited Solutions optimistic about the deal's viability.

Positive

• Target company generated $33.7 million in sales in 2023
• Target company on track for $42.5 million revenue run-rate in 2024
• Target company is profitable on a net income basis
• Potential for synergistic growth through capital injection and resource sharing
• Opportunity for cross-selling with future Accredited Solutions acquisitions
• Plans to develop new products and APIs for fintech integration
• Potential for entry into new international markets

Negative

• Transaction is still in early stages with only an Indication of Interest executed
• Closing of the deal is contingent on completion of a timely audit
• Potential integration challenges between the two companies

NEW YORK, NY, Sept. 06, 2024 (GLOBE NEWSWIRE) -- Accredited Solutions, Inc. (OTC: ASII) ("Accredited Solutions" or the "Company"), the parent company of Diamond Creek Water, is excited to announce the execution of an Indication of Interest ("IOI") letter for the acquisition of a leading US-based B2B distributor of third party e-gift cards.  This target company (“Target”) generated $33.7 million in sales in 2023 and is on track for a 2024 revenue run-rate of $42.5 million and is profitable on a net income basis.

The potential acquisition aligns with Accredited Solutions' growth strategy, which includes synergistic opportunities to accelerate target’s growth through the injection of additional capital and resources. By integrating the marketing and administrative functions of both companies and leveraging cross-selling opportunities with future Accredited Solutions acquisitions, the combined company is poised to scale rapidly. Furthermore, Accredited Solutions plans to develop new products and APIs to enable the target’s integration with other fintech companies and entry into new international markets.

“We are thrilled by the prospects of this acquisition and the synergistic growth potential that brings to the table,” said Eduardo Brito, CEO of Accredited Solutions, Inc. “The combination of Accredited Solutions' resources and the target’s established presence in the fintech space provides an exciting opportunity to drive significant growth and value. While we remain prudent in our projections, we are confident that this acquisition will unlock new avenues of expansion and accelerate our 5-year growth plan.”

Path to Closing

While Accredited Solutions is very pleased with the information received about the target to date, the transaction will advance to a more binding Letter of Intent ("LOI") once the Company confirms its ability to complete a timely audit. After the audit is finalized, Accredited Solutions expects to move towards closing under the terms established in the LOI.

The Company anticipates a smooth process and is optimistic in the viability of the deal and is well-positioned to finalize it. Until the audit is nearing completion, the viability of closing the transaction remains under careful evaluation, but the Company’s outlook remains very positive.

Please, refer to 8K being filed this morning on the details of the IOI.

Relevant Links:

https://www.diamondcreekwater.com

Safe Harbor Statement:

Statements in this news release may be "forward-looking statements." Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions, or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates, and projections about our business, based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release, and the company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.

Accredited Solutions, Inc. Contact:
info@diamondcreekwater.com
Follow Us on:
X (Twitter): @asii_Inc

Source:
Accredited Solutions, Inc.
https://www.diamondcreekwater.com

FAQ

What company is Accredited Solutions (ASII) planning to acquire?

Accredited Solutions (ASII) is planning to acquire a leading US-based B2B distributor of third-party e-gift cards. The specific name of the target company has not been disclosed in the press release.

What are the financial details of the target company Accredited Solutions (ASII) intends to acquire?

The target company generated $33.7 million in sales in 2023 and is on track for a 2024 revenue run-rate of $42.5 million. It is also reported to be profitable on a net income basis.

What is the current status of the acquisition process for Accredited Solutions (ASII)?

Accredited Solutions (ASII) has executed an Indication of Interest (IOI) letter. The next step is to progress to a binding Letter of Intent (LOI) once the company confirms its ability to complete a timely audit of the target company.

How does this potential acquisition align with Accredited Solutions' (ASII) growth strategy?

The acquisition aligns with Accredited Solutions' growth strategy by offering synergistic opportunities, potential for cross-selling with future acquisitions, plans to develop new products and APIs for fintech integration, and opportunities for international market entry.