- Xigem Technologies’ (XIGM) signs binding LOI to acquire assets of Cylix Data in a $32.35 million transaction
- The deal marks Xigem’s expansion into data sector and values Xigem at a 300 per cent premium to market
- The global market for big gata was estimated at US$70.5 billion in the year 2020, and is projected to reach US$243.4 billion by 2027
- Cylix has hundreds of blue-chip clients who regularly benefit from Cylix’s continually refreshed proprietary database
- Xigem Technologies Corporation (XIGM) is up 46.67 per cent, trading at C$0.17 at 10:20 am ET
Xigem Technologies Corporation (XIGM) has entered into an LOI to acquire the assets and operations of 2747524 Ontario Inc. o/a Cylix Data Group.
The binding letter of intent signed on October 29, 2021, covers the purchase of substantially all of the assets of Cylix for $32.35 million.
The purchase is to be paid entirely through the issuance of securities of the company, as described in greater detail below.
With its proprietary database holding more than 74 million data points over nearly thirty years, Cylix is poised to become one of the leading and most robust aggregators and originators of corporate and personal data in the Big Data market.
According to research and markets, the global market for big gata was estimated at US$70.5 billion in the year 2020, and is projected to reach US$243.4 billion by 2027, spurred on in large part by the ramifications of the COVID-19 pandemic.
Historically profitable and independently valued at nearly $32 million, Cylix is in the final stages of a near $1 million upgrade to add intuitive AI functionality for greater monetization and sustained differentiation in its core business of generating customer profiles and business risk scores.
Cylix’s intellectual property is also flexible enough to easily integrate with Xigem’s iAgent and other SaaS-based platforms to place mission-critical decision-making in the hands of users, seamlessly and instantly.
“The acquisition of Cylix will be transformative for Xigem, both in scale and in the growth opportunities it creates. Data is considered by many to be the world’s most valuable resource, and with the emergence of the remote economy, its value has never been greater for consumers and businesses alike,” said Brian Kalish, co-founder and Chief Executive Officer of Xigem.
“We are pleased to continue to execute our strategy of adding innovative technologies to our portfolio through a combination of research, development and acquisition,” added Kalish.
Cylix is expected to become a unifying engine that connects and drives other key technologies in Xigem’s portfolio.
Cylix has delivered strong financial results in recent years, with average annual revenues in excess of $1.75 million and an EBITDA of over $800,000, generated primarily through its business risk profiling offering.
In operation for nearly three decades, Cylix has hundreds of blue-chip clients who regularly benefit from Cylix’s continually refreshed proprietary database.
“The unification of our AI technology with Xigem’s iAgent platform and FOOi payment app will open new verticals and additional applications that will enable people to make better business decisions,” said Mitchell Kahan, Chief Operating Officer of Cylix.
Cylix is a B2B business intelligence technology company whose software improves efficiency and increases productivity for business professionals through the supply of information required to implement risk-management and decision-making processes.
Xigem Technologies Corporation (XIGM) is up 46.67 per cent, trading at C$0.17 at 10:20 am ET.
