Accredited Solutions Signals Intent to Acquire Leading Fintech Company in B2B e-Gift Card Distribution

Accredited Solutions, Inc. (OTC: ASII), the parent company of Diamond Creek Water, has announced the execution of an Indication of Interest (IOI) letter for the acquisition of a leading US-based B2B distributor of third-party e-gift cards. The target company generated $33.7 million in sales in 2023 and is projected to achieve a revenue run-rate of $42.5 million in 2024, with profitability on a net income basis.

This potential acquisition is a crucial step in Accredited Solutions' growth strategy, aiming to inject additional capital and resources to accelerate the target company's growth. By integrating marketing and administrative functions and leveraging cross-selling opportunities with future acquisitions, the combined entity is expected to scale rapidly. Moreover, Accredited Solutions plans to develop new products and APIs to facilitate the target’s integration with other fintech companies and entry into new international markets.

“We are thrilled by the prospects of this acquisition and the synergistic growth potential that brings to the table,” said Eduardo Brito, CEO of Accredited Solutions, Inc. “The combination of Accredited Solutions' resources and the target’s established presence in the fintech space provides an exciting opportunity to drive significant growth and value. While we remain prudent in our projections, we are confident that this acquisition will unlock new avenues of expansion and accelerate our 5-year growth plan.”

The acquisition process will advance to a more binding Letter of Intent (LOI) once Accredited Solutions confirms its ability to complete a timely audit. Following the audit's finalization, the company expects to move towards closing under the terms established in the LOI. The company anticipates a smooth process and remains optimistic about the deal's viability. Until the audit nears completion, the transaction's viability will be carefully evaluated, but the outlook remains very positive.

This strategic move by Accredited Solutions is not only indicative of its ambition to expand its footprint in the fintech sector but also highlights the growing relevance of digital financial solutions. The acquisition could potentially open up new revenue streams and markets, both domestically and internationally, for Accredited Solutions. Additionally, the focus on developing new products and APIs positions the company to stay competitive and innovative in an ever-evolving industry.

For further details on the IOI, refer to the 8K filing being made this morning.

Relevant Links:
https://www.diamondcreekwater.com