Slyce Inc. (TSXV:SLC) is acquiring Israel-based BuyCode Inc., developer of the Pounce mobile payment app, for up to US$5 million in shares, cash and earn-out incentives.
Toronto-based Slyce says the Pounce app, available both directly to consumers and as a private label solution to retailers, is expected to bolster a suite of mobile shopping services Slyce already provides its retail customers while also saving it significant development time and investment.
Pounce is a mobile commerce app and platform which enables consumers to hover over product images with their smartphone's camera and, using image recognition, carry out one-click checkouts of the items they discover.
Slyce says BuyCode has already integrated its mobile payments technology with several of North America's largest retail brands, including Hudson's Bay (TSX:HBC), Lord & Taylor and others.
Through technology integration, the deal is expected to fast-track Slyce's consumer facing strategy whereby Slyce app users will be able to snap-to-purchase real-world products with one click.
The purchase price includes US$1.16 million in cash and an additional US$1.5 million through the issuance of some 3.1 common shares at an issue price of 53 cents per share (49 cents US). A further US$2.34 million is payable in shares after certain integration and revenue milestones are reached.
Pounce founder and CEO Avital Yachin, formerly head of social commerce for Sears worldwide, will join the Slyce executive team.
"We're incredibly excited to be acquiring both the technology and the immense talent that Pounce comes with," Slyce CEO Mark Elfenbein said Tuesday in a statement announcing the acquisition.
"We are consistently looking to add and perfect the functionality we can offer major retailers with the Slyce visual search platform. Through integrating the technologies, we can offer our retail partners an almost seamless discovery-to-purchase process for their customers whereby consumers can go from seeing an item in the real world to purchasing that item from the retailer's inventory in literally a few clicks."
This content appears as provided to The Globe by the originating wire service. It has not been edited by Globe staff.