Customer experience startup Flamingo acquired by ASX-listed Cre8tek for estimated $10.7 million in shares
It was announced yesterday that customer experience focused startup Flamingo (Flamingo Customer Experience Inc), founded by high-profile entrepreneur Dr Catriona Wallace, was acquired by ASX-listed technology and software development company Cre8tek.
The SaaS-model startup announced to current shareholders that 100 percent of the company was being acquired, while it was also announced that Cre8tek will undertake a minimum capital raising of $2 million for further development of the Flamingo platform.
Flamingo is a cloud-based platform that allows big businesses to treat their customers like individuals. In simpler terms, what Flamingo provides for businesses is a digital hub, which it calls a ‘co-creation lab’, that allows customers and employees of the business to co-create the experience that a customer wants. This is all done within the parameters of what the business is able to deliver to its clients.
The result of that is an increase in online sales conversions and lowered customer retention rates. It does this using its patented software, which learns how customers and employees interact and then automates this process.
Flamingo currently has offices in Sydney, where it is based in fintech hub Stone and Chalk, and New York. It boasts bluechip clients such as Nationwide Insurance, New York Daily Gazette, Prime Financial, and Quay Credit Union. It also claims to have a strong pipeline of potential clients across both Australia and the United States that it is currently in conversations with.
This acquisition comes after raising an angel investment round of $2.11 million in December 2014, and during a time where Flamingo was in the process of raising a round of Series A investment.
“We were really pleased to be approached by the Cre8tek board during our recent capital raise activities,” Dr Wallace said in a statement.
“As an Australian-led and developed technology company, we are excited that the Federal Government’s Innovation Agenda has shone a spotlight on the opportunities that high-tech startups like Flamingo can provide for investors. We very much look forward to working with Cre8tek to deliver on these opportunities.”
Dr Wallace and fellow Flamingo directors Cathie Reid and Paul Hunyor will join the Cre8tek board upon completion of the acquisition; at this point it also appears that the full Flamingo management team will remain in place, including Dr Wallace remaining CEO of the company.
According to reports from sources such as Reuters and data scanned by our Startup Daily Insights tool, the initial consideration for the transaction is 272.7 million Cre8tek shares to be issued, holding a value of $10.4 million, based on Createk’s last traded price. Details for the $2 million raise to further develop Flamingo will be outlined in a prospectus that will be available in the near future.
Featured Image: Dr Catriona Wallace | Image: On File.