Invigor’s pipeline swells after $10M Sprooki acquisition
- 09 October, 2017 11:59
Australian publicly-listed big data company, Invigor (ASX:IVO), is eyeing up a surge in new deals thanks, in part, to its $10 million deal to acquire retail e-commerce analytics startup, Sprooki.
The company, which counts itself as a Cisco partner, announced the acquisition in April, saying at the time that the move was aimed at giving retailers an antidote to increased competition from new entrants such as Amazon.
Now, the company is talking up the benefits of the acquisition, suggesting that it is already helping to increase its revenues and has delivered a pick up for its sales pipeline.
“We have secured a series of contract wins over the past three months in addition to the significant growth of our sales pipeline,” the company told investors in a trading update released on 9 October.
The company also revealed a number of recent contract wins for its solutions, including with Zoos Victoria, Sharp Australia and Pernod Ricard Australia.
Invigor also talked up its new deal with Microsoft, which includes the optimisation of Invigor Shopper Insights on Microsoft Azure for a key Australian enterprise retail customer.
“Invigor looks forward to exploring more opportunities to build transformational retail solutions leveraging the Microsoft cloud platform and go-to-market investments. Invigor previously announced channel partnerships with EBay and GoDaddy for the SpotLite platform,” the company said.
It is likely that much of the latest trading update is part of the company’s efforts to reassure shareholders after posting losses of $8.5 million for the six-month period ending June, including impairment charges amounting to more than $6 million.
The company, which released its half-yearly financial report on 31 August, told shareholders that it incurred an impairment charge of $4.6 million against the goodwill of Invigor Digital Solutions during the period.
It also reported an impairment charge of $1.4 million against the investment in TUXXE, and an impairment charge of $450,000 raised against the patent received from MVID, thanks to a reduction of debt in July 2016 which was revalued at 30 June 2017.
However, the company reported a slight rise in revenues for the period, taking in $4.7 million, up 2.8 per cent over the corresponding half last year.