Crossrider plc Acquires digital product for app distribution platform
Crossrider, the online distribution and digital product company, today announces the expansion of its app distribution business with the acquisition of PC maintenance software product, DriverAgent, from eSupport.com, Inc. for a total consideration of $1 million.
The bolt-on acquisition is in line with Crossrider's new strategy, announced at the time of the interim results on 20 September 2016 ("Interim Results"), to strengthen the Group's B2C reach allowing it to operate as a digital distribution and product hub utilising its existing technology and intellectual property.
DriverAgent is a leading device driver search and update service which scans computers for outdated drivers and is designed for all Windows operating systems. The product has been downloaded more than 50 million times since 2006 and is designed for use with desktop computers, tablets and mobile devices.
Prior to the acquisition of this product, the Group successfully promoted it on the Crossrider's proprietary app distribution platform, achieving a 125% increase in revenue from the product and doubling the gross profit when compared with the monthly average profit achieved prior to launch on the platform, as referred to in the Interim Results. This early success gives the Board confidence that DriverAgent can be integrated quickly and profitably and evidences the Company's scalable app distribution business model.
Ido Erlichman, Chief Executive Officer of Crossrider, said:
"This is a first bolt-on acquisition for Crossrider as we accelerate our growth into the online product and distribution space. Crossrider's expertise is and has always been in driving and monetising online traffic, moreover as we announced in September, we believe it is by concentrating our expertise on developing and growing our app distribution hub that we will create the greatest value for shareholders. Launching - and acquiring - new online products to leverage our distribution funnel is one of the means by which we will do this, and this acquisition is the first step on the journey."