Cannabis Software Firms Akerna, Viridian Sciences Agree To All-Stock Deal

Akerna Corp KERN has agreed to acquire fellow cannabis business software firm Viridian Sciences in an all-stock transaction. 

The terms of the deal were not disclosed.

The deal grants Viridian's 30-plus clients access to Akerna's "Compliance Gateway" as well as the firm's MJ Retail app, according to a joint Thursday announcement from the companies.  

"Cannabis operators are quickly becoming a more sophisticated buyer of technology, demanding ERP solutions that scale with their business and also provide the security of multi-state compliance," Akerna Chief Executive Officer Jessica Billingsley said in a statement.

ERP, or enterprise resource planning, aims to help cannabis businesses save money and improve functionality with one centralized tool to keep track of compliance, risk management, customer management, human resources, inventory and supply chain information.

"As we prepare for a post-legalization landscape, Akerna is focused on strengthening our channel connections with existing ERP providers and firmly solidifying our strategic moat as the only scaled cannabis compliance and technology provider," Billingsley said. 

Akerna CEO Jessica Billingsley. 

This isn't the first go at M&A for Akerna. Last year, when a majority of deals were put on hold due to the onset of the coronavirus pandemic, the Denver-based company managed to ink two separate deals in one week.

Akerna bought Trellis for $2 million and Rolling In The Green for an undisclosed price.

Before that, it purchased Canadian-based Ample Organics Inc in a liquidity-and-stock deal estimated at up to $45 million.

Viridian CEO Grant Fraser said a combination with Akerna bolsters the company's ability to grow in new markets.

The Viridian merger is expected to close in April.

A.G.P./Alliance Global Partners advised Akerna on the deal, while law firm Dorsey & Whitney LLP provided legal counsel.

Viridian hired Solganick & Co. to advise the sale process and law firm Ballard Spahr LLP to handle legal matters.

KERN Price Action: Akerna shares were rallying by 20% to $6.24 in Thursday's premarket session.