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Cannabis ERP System Specialist Akerna to Acquire 365 Cannabis
Tuesday 14 September 2021

US-based cannabis industry enterprise software provider Akerna (NASDAQ: KERN) has signed an agreement to acquire 365 Cannabis, a cannabis business management software system built on Microsoft's Dynamics 365 Business Central in a USD 17m deal at 2.1x LTM revenue, the company said.

The combined key capabilities of the acquisition are listed at the bottom of this announcement.

As a result of the acquisition, 365 Cannabis' 85+ clients will gain access to Akerna's Compliance Gateway, feature-rich reporting, MJ Retail POS, and the recently launched Akerna Connect.

Akerna has partnered with SAP, Sage Intacct, and other providers for integrated financials and tax planning, offering cannabis operators a solution for each stage of their evolution from startup to multistate operator while maintaining regulatory compliance every step of the way through Akerna's Compliance Gateway.

According to the company, the acquisition of 365 Cannabis accelerates the deployment of this strategy with the addition of Microsoft capabilities, further establishing Akerna as the most robust cannabis-compliant ERP system offering a full portfolio of mainstream tax and financials.

Over the past few years, there has been a substantial positive change in the political and social climate surrounding the cannabis industry, which has seen continued growth in revenue, new markets, and consumers.

Cannabis 365 clients include Pharmacann, Nectar, Revolution, Sundial, Kiaro, and many others.

The deal will be paid with USD 4m in cash and USD 13m stock with a potential earnout of USD 8m.

The acquisition is expected to close in Q4 and is subject to customary closing conditions.

Akerna (NASDAQ: KERN) is an enterprise software company focused on compliantly serving the cannabis, hemp, and CBD industries.

First launched in 2010, Akerna has tracked more than USD 20bn in cannabis sales to date and was the first cannabis software company listed on NASDAQ.

365 Cannabis is a vertically integrated cannabis software solution built on the Microsoft Dynamics platform.
Date Published: 14/09/2021