Locafy Limited (NASDAQ:LCFY, LCFYW)) ("Locafy" or the "Company"), a global SaaS technology company specializing in location-based Search Engine Optimization (SEO) and Answer Engine Optimization (AEO), today announced that it has entered into a definitive agreement to acquire the assets and customer base of Map Labs, a U.S.-based maps marketing software and services business, for total potential cash consideration of up to US$3.0 million, subject to the satisfaction of customary closing conditions. The Company believes the transaction, which is scheduled to close on or before December 31, 2026, is expected to materially increase Locafy’s revenue and operating profitability while accelerating its U.S. growth strategy.

Key Highlights

  • Scale and profitability: Based on unaudited management estimates, Map Labs is expected to generate approximately US$2.0 million (A$2.84 million) in annual recurring revenue (ARR) and approximately US$900,000 (A$1.27 million) of Earnings Before Interest and Taxes (EBIT) in calendar year 2026, representing an approximate 45% EBIT margin and valuation of 2.2x EBIT.
  • Performance-based consideration: The acquisition is structured as US$2.0 million payable upfront with an additional US$1.0 million contingent upon the acquired business achieving significant future revenue growth. US$500,000 is payable if Map Labs achieves greater than US$3.84 million of revenue during calendar year 2027 (approximately 92% growth compared to US$2.0 million), with a further US$500,000 payable if revenue exceeds US$4.76 million during calendar year 2028 (approximately 138% growth compared to US$2.0 million).
  • Pathways to drive growth and margin expansion: Locafy will combine Map Labs’ established U.S. multi-location customer base and Maps marketing capabilities with Locafy’s SEO, AEO, citation, automation and AI-powered website technologies. The Company expects to drive cross-selling, automation-led efficiencies, and increased operating leverage across the combined customer base.
  • The Company intends to fund the upfront consideration primarily through a debt facility. No Locafy securities will be issued as consideration in connection with the acquisition.