Grove Inc's GRVI Upexi has signed a non-binding letter of intent to acquire E-Core Inc and its brand subsidiaries, including New England Technology Inc (NETi) and Tytan Tiles.
E-Core is a technology consulting and development services provider.
The diversified business fits perfectly with the company's brand acquisition strategy and its recently acquired Cygnet Online business.
As of March 31, Grove held a cash balance of $4.5 million, and recently the company completed a $16.5 million debt financing to fund acquisitions.
Why It Is Important: The company is a great match for Grove's brand strategy. Management believes the team should be able to boost sales with an anticipated new Amazon launch and eCommerce advertising campaign.
NETi has seen growth over the previous year with over $35 million in TTM revenues, representing a significant increase in Grove's current run rate and forecast.
E-Core's Tytan Tile brand is available at multiple big box retailers and online stores.
CEO Allan Marshall commented, "Successfully closing this acquisition should put us on target for accelerating revenue and EBITDA in 2023 above our previously announced estimates."
Price Action: GRVI shares closed at $4.96 on Monday.
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