- Facedrive (TSXV:FD) has agreed to acquire fellow rideshare app HiRide
- The strategic acquisition will add HiRide’s car-pooling network of over 20,000 people to Facedrive’s operations expansion
- HiRide shareholders will receive C$1 million in Facedrive common shares, along with future conditional payments of up to $2.5 million
- Facedrive Inc (FD) is up 27.50 per cent, and is currently trading at $3.06 per share
Rideshare company Facedrive (TSXV:FD) has entered into a Share Exchange Agreement to acquire 100 per cent of HiRide Share Ltd.
The strategic acquisition is Facedrive’s latest step to expand its operations into new cities and countries.
Through the acquisition, the company will gain access to HiRide’s car-pooling network of over 20,000 people. Facedrive will target high-demand university and education markets with HiRide’s completed AI engines, fully functional app, and future update releases.
Facedrive CEO, Sayan Navaratnam, said the acquisition of HiRide has high-level strategic significance for Facedrive.
“Not only does it increase our global expansion power several times, it also adds a broad case of commuter customers directly to our first- and last-mile ride-sharing app.
“From the outset, Facedrive has sought to support and incubate emerging technologies in this Transportation as a Service space.
“HiRide shares our principles of environmental and social responsibility in the sharing space. Its targeting of the extensive university and education market space for ride-sharing is also in lockstep with Facedrive’s global expansion plans,” Sayan said.
Facedrive will pay HiRide shareholders C$1 million payable on closing in common shares of Facedrive.
The shareholders will also receive up to 2.5 million in future conditional payments over a two-year period. The conditional payments will be dependent upon the achievement of certain milestones in financial, technical, and business areas.
HiRide CEO, Akshat Soni, called the development a win-win for both companies.
“From an environmental perspective, we envision a world where driving is sustainable, and car-pooling is an answer to climate change. This aligns perfectly with Facedrive’s initiatives to benefit every community it enters by offering a zero-carbon method of ride-sharing,” Akshat said.
Facedrive’s share price is up 27.50 per cent, and is currently trading at $3.06 per share, as of 9:58am EST.