09:49:35 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Engagement Labs Inc
Symbol EL
Shares Issued 18,671,138
Close 2014-07-21 C$ 0.54
Market Cap C$ 10,082,415
Recent Sedar Documents

Engagement to acquire on-line communications company

2014-07-22 12:39 ET - News Release

Mr. Paul Allard reports

ENGAGEMENT LABS TO ACQUIRE TORONTO SOCIAL MEDIA PIONEER ENTRINSIC

Engagement Labs Inc. is to acquire Entrinsic, an innovative social media analytics and communications agency. Eli Singer, founder and chief executive officer of Entrinsic, will become chief strategy officer and a substantial shareholder of Engagement Labs. Mr. Singer, a visionary digital marketer, will contribute to the company's social activation lab, and build relationships with brands and agencies, as well as contribute to product innovation. Entrinsic had revenues of approximately $2.4-million and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $366,000 in 2013.

Entrinsic will be integrated with Engagement Labs' Toronto office, adding social media marketing and analytics expertise in finance, high technology, telecommunications, groceries, consumer packaged goods and auto verticals to the Engagement Labs eValue analytics technology and managed services offering. It is anticipated that all employees of Entrinsic will join Engagement Labs.

"I am thrilled to be joining Engagement Labs," said Mr. Singer. "Our work has always been deeply rooted in analytics-based insights, an approach that has proven repeatedly successful with clients. This is a logical evolution for us, as Engagement Labs has built next-generation social media measurement and monitoring technology that is a game changer for brands and agencies looking to develop great results by focusing on digital programs."

The expectations of North American marketers on social media platforms like YouTube, Twitter, Facebook and LinkedIn have grown significantly over the last two years, and will continue to rise dramatically into 2015 and beyond. Marketers will increasingly need next-generation systems for scoring brand performance, finding real-time insights on niche targets, and high-technology dashboard systems, which will integrate into corporate big-data infrastructure.

"As we are solely focused on providing marketers with intelligent, actionable customer engagement data, adding Entrinsic social analytics and activation expertise to our offering was the next evolutionary step for us in creating a best-in-class social technology company," explained Paul Allard, Engagement Labs' CEO. "With our Intelligent Data on Demand platform -- eValue analytics -- at the core of our business strategy, we are now able to offer our clients the next generation of social analytics systems with the insights, intelligence and optimization they need."

The consideration for the acquisition consists of a cash payment of $505,000 at closing plus 1,919,000 common shares of Engagement Labs valued at 50 cents per share for an aggregate purchase of $1.46-million. Of the 1.9 million common shares issued at closing, 1.4 million shares are subject to an escrow release of one-third per year over the next three years (subject to acceleration in certain circumstances). Completion of the transaction remains conditional, subject only to the approval of the TSX Venture Exchange.

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