–News Direct–
Xigem Technologies CEO Brian Kalish joined Steve Darling from Proactive to shed light on the company's latest venture: the acquisition of EchoDigital, a robust SaaS-driven AI platform focused on automotive shopping and delivery.
This strategic move has already begun bearing fruit as Xigem received noteworthy results from the newly acquired asset in the initial quarter of 2023.
Following the successful acquisition, and in alignment with the stipulated royalty and service-oriented management arrangement, EchoDigital swiftly contributed to Xigem's financials.
Impressively, the platform generated gross sales amounting to $439,684, with net sales of $13,191. These early figures underscore the potential and viability of this business endeavor.
In addition to this achievement, Xigem faced an interesting development involving one of its vendors. This vendor's entire share portfolio was acquired by Carnance Inc., a reputable player in the market for new and pre-owned vehicles, duly registered with the Ontario Motor Vehicle Industry Council. This transaction carried with it the seamless assumption of all existing obligations, including the royalty and service-centric management agreement and loan agreement inked between Xigem and the vendor during the initial acquisition.
As a corollary of the Carnance Transaction, Xigem anticipates a temporary halt in EchoDigital's performance, followed by a prospective resumption in the latter part of its third fiscal quarter or the outset of the fourth quarter in 2023.
This intermission is attributed to the procedural transition of responsibilities resulting from the vendor's change in ownership.
Despite this pause, Xigem remains enthusiastic about the future outlook of EchoDigital, projecting a positive trajectory as the business realigns and accelerates growth in the specified quarters.
Contact Details
Proactive Canada
+1 604-688-8158
na-editorial@proactiveinvestors.com
View source version on newsdirect.com: https://newsdirect.com/news/xigem-technologies-provides-update-on-acquisition-of-echodigital-978163830
Xigem Technologies
COMTEX_438873588/2655/2023-08-22T14:03:29
