Akerna To Acquire 365 Cannabis For $17M

Akerna Corp KERN has agreed to acquire 365 Cannabis, a cannabis business management software system built on Microsoft Corp's MSFT Dynamics 365 Business Central, in a $17 million deal at 2.1x LTM revenue.
The consideration includes $4 million in cash and $13 million stock with a potential earnout of $8 million. The acquisition is expected to close in Q4.
365 Cannabis' 85+ clients will gain access to Akerna's Compliance Gateway, feature-rich reporting, MJ Retail POS, and the recently launched Akerna Connect.
The acquisition of 365 Cannabis adds Microsoft capabilities, further strengthening Akerna's cannabis-compliant ERP system offering. Akerna has also partnered with other providers for integrated financials and tax planning.
Akerna held cash and equivalents of $12.29 million as of June 30, 2021.
Price Action: KERN shares are trading higher by 8.46% at $3.59 during the premarket session on Tuesday.