Douugh Ltd (ASX:DOU) signs binding agreement to acquire Radical DBX, Inc.

Douugh Ltd (ASX:DOU) has signed a binding share purchase agreement to acquire Radical DBX, Inc., a US B2B fintech platform services business. The acquisition will provide Douugh with technology and established client contracts, generating a stable income stream. In the calendar year of 2023, Radical DBX, Inc. turned over approximately $1.1m in revenue.

Founder & CEO Andy Taylor's commentary on the acquisition

We are delighted to announce the proposed acquisition of Radical DBX, Inc. This acquisition will give us a major head start into launching our embedded finance offering, with a core focus on credit-as-a-service in the US market, as well as scale up our presence in Australia and later in the wider Asia Pac region. Importantly it gives us the opportunity to commercialise the US component of our technology platform we invested SO heavily into developing since our founding. Which is a major win for our shareholders.

Summary of Douugh's acquisition and future plans

Douugh (ASX:DOU) has entered into a binding share purchase agreement to acquire Radical DBX, Inc., a US B2B fintech platform services business. The acquisition will provide Douugh with technology and established client contracts, generating a stable income stream. Douugh intends to launch its service in the US and upsell these customers, as well as scale up its Australian operation. The company also secured $1.0m in working capital via a convertible loan from US fintech investor, Relentless Fintech Partners, Inc. Douugh proposes to change its name to Stakk Limited to reflect its strategic focus on B2B platform services. The company aims to strengthen its position in the US market and expand its presence in the wider Asia Pac region, leveraging the technology platform developed since its founding.