Release Date: May 17, 2018
The location technology provider Yepzon Oy is strengthening its position on the US location service market. Yepzon’s first M&A is to merge the consumer business of PocketFinder, a licensing partner of Yepzon since 2016, into Yepzon’s US affiliate, Yepzon Inc.
The Letter of Intent for the acquisition was signed on April 3, 2018. Should the M&A be realized, the company behind PocketFinder, Location Based Technologies (LBAS), listed in the US, will become an owner in Yepzon Inc.
Merger to Increase Yepzon’s Market Share and Revenue
PocketFinder is one of the best-known location brands on the US consumer sector. The tentatively agreed acquisition would enable Yepzon to grow its market share and revenue. Consumer business in the US involves higher prices and better profits than on other markets.
Yepzon’s US arm would grow faster as a result of the M&A compared to organic growth. The aim is to turn Yepzon’s US arm, Yepzon Inc, into a robust stand-alone operator that can, if need be, raise capital directly on the US capital market.
“The licensing partnership has proven that there is significant growth potential on the US market,” says Otto Linna, the founder of Yepzon Enterprises. “As a technology leader, it is a natural step for us to now focus our consumer business to the world’s no. 1 target market in this field. By partnering up with PocketFinder, we can use our strong brands to increase our lead.”
“The IoT tracking world remains highly fragmented. We see this as an opportune time to bring the “best of the best” together with the desire to leverage and build upon each partner’s strengths, knowledge and abilities,” says Dave Morse, CEO, LBAS.
Strong Start for Crowdfunding Campaign
Today, Yepzon launched a public share issue on the crowdfunding platform Invesdor. Yepzon will raise a maximum of €1.2M through crowdfunding. By the launch date of the public issue, more than €180.000 was subscribed toward this goal. The advance subscriptions already cover 41% of the approximately half-million euro minimum target set by Yepzon.
This equity financing round is part of a wider €2.2M financing package, with debt instruments worth €1.0M raised from Nordea Bank. Via Nordea Bank’s additional financing package, the investors get major leverage for their equity investment.
“Our previous crowdfunding round was a success, enabling us to reach our maximum target in a record time. We received a lot of feedback from investors who were too late to join in at that stage,” says Linna. “Yepzon’s strength lies in the shareholders. Now, we want to give a new opportunity to people who share our passion.”
CEO, Yepzon Oy
+358 43 217 0275
CEO, Location Based Technologies, Inc.
+ (1) 866 726 7543
Yepzon Oy is the developer of easy-to-use mobile location services. Founded in 2013, the company has a staff of 8 and employs approximately 100 product developers on subcontracts. Yepzon’s global, but primarily Finnish, ownership is divided between private investors operating in different sectors. The company’s headquarters are in Tampere, Finland. Yepzon Ltd., registered in London, is a subsidiary completely owned by Yepzon Oy. Yepzon Inc., registered in Nevada, USA, is a joint enterprise with Global Expansion Solutions. Yepzon Enterprises India Pvt. Ltd is a joint venture managed by Yepzon Oy in Delhi, India, jointly owned by VVDN Technologies. www.yepzon.com