On May 25th, the Washington Business Journal featured news on REI’s intent to find an acquisition in the near future. An excerpt from the article is below.
The company’s goal is to secure a letter of intent from a potential target before the end of 2017, Salona said, if not close a deal all together. Salona said that to this point, his company has “talked to every player in the ecosystem around mergers and acquisitors” and is in the “sourcing stage.” By the end of the current quarter, the company is looking to cut down potential acquisition targets to three.
Salona was encouraged by the company’s key wins out of its burgeoning state and local market. The company has scored recent contracts to provide its grant management software to Utah, Rhode Island and Ohio. This is positive for the company for a couple of reasons. The first of which is that it represents what Salona believes will be a fertile growth market. Also, by building applications, REI is able to provide a software-as-a-service offering, which produces higher margins than its traditional services businesses, Salona said.
If you have a WBJ subscription, you can read the full article on WBJ’s site.