News: Latitude Consolidated to join tech sector with new acquisition

Latitude Consolidated (ASX:LCD) should trade significantly higher after signing an agreement to acquire Yatango, a consumer services technology company.

Yatango is a consumer technology company founded by Andy Taylor, who is also a founder of SocietyOne, Australia’s first fully compliant peer to peer lender.

Yatango is cloud based software, services and analytics platform that covers a range of everyday lifestyle services.

The company has to date launched two product verticals:

Yatango Mobile, a mobile network provider that puts members in control by allowing them to build their own mobile plan and pay for what they need on a no contract basis; and  Yatango Shopping, an e-commerce marketplace that partners with a wide range of sellers to deliver customers better pricing and choice on a wide range of lifestyle products, engineered as a social shopping experience.

Yatango’s current monthly revenue exceeds $1 million from a registered user base of more than 175,000.

Later this year Yatango plans to launch Yatango Money; a consumer based financial services product vertical providing tools for customers to better spend, save, borrow and lend money.

 

Acquisition terms

Latitude has executed a binding terms sheet to acquire 100% of the issued capital of Yatango subject to the satisfaction of certain conditions precedent.

Consideration is 1.2 billion Latitude shares; 333,333,333 share options with a 3 month expiry and a $0.04 strike price; and 666,666,666 performance rights to key employees and management of Yatango which will convert to shares upon the achievement of the milestones.