Montreal-based AtmanCo Inc. (TSX-V:ATW) said Monday morning that it is working with an arm's-length company to acquire PlusMobile LLC and its assets, signing a letter of intent with shareholders of PlusMo Group, the parent company to PlusMobile.
Headquartered in Buenos Aires and founded 12 years ago, PlusMobile is a provider of mobile phone products, such as apps and mobile marketing, in six Latin American countries. During 2016, PlusMobile logged $4.7 million U.S. in sales, providing products and services for more than 1.2 million subscribers.
The price being negotiated for the acquisition is $2.5 million U.S. The deal also includes an agreement that make AtmanCo the exclusive North American distributor of MovyPark Mobile Parking, an application for parking space management currently utilized in several large South American cities.
MovyPay is also owned by PlusMo Group.
AtmanCo is an information technology and resources company with a portfolio of web platforms covering phone solutions, carrier billing, social networking, data management, marketing and texting.
The purchase of PlusMobile and agreement for MovyPay will widen its geographic footprint and deepen its product portfolio, creating new channels for revenue. It also opens the door to bring PlusMobile's Spanish language products into new markets in the Americas, including the U.S.
Traders often don't get too revved up over an LOI; they want something binding and definitive. In that vein, market participants are moving cautiously with the AtmanCo news as well, with shares up just a penny at 16 cents in early trading Monday morning on Bay Street.
