Fintech
After Facing “Challenging Operating Conditions,” Jasper Commerce Sells Operations Business to Digital Commerce Payments
Jasper will retain a portion of the capital and future profits, but otherwise “has no ongoing operations.”
Calgary-based FinTech company Digital Commerce Payments (DCPayments) has acquired the operating business of Toronto-based product information management (PIM) company Jasper Trade.
The deal saw Jasper’s wholly-owned subsidiary, Jasper Interactive Studios Inc. (JISI), sell all of its assets to DCPayments for up to $1.5 million, as the deal calls for a revenue earnings over a three-year period following the closing of the transaction.
DCPayments aims to grow and become “a one-stop shop for businesses” looking to move online or expand their online offerings.
PIM includes the processes and systems used to efficiently manage and maintain product data. It includes collecting, storing, and organizing all of a company’s product information to ensure it is accurate and up-to-date across all channels.
Jasper Commerce has developed a tool that helps merchants organize their inventory data and synchronize it with e-commerce platforms.
One such platform is Shopify, and Jasper lists himself as a Shopify Plus partner on his website. The company was founded in 2010 and his clients over the years have included brands like Skull Candy, SamsoniteAND Yeti Cycles.
DCPayments, founded in 2007, offers digital payment solutions, including integrated payments, card services and digital wallets to Canadian businesses. The acquisition will add Jasper’s PIM capabilities to DCPayments’ core payment business.
In a statement, DCPayments said it is seeking to grow both organically and through acquisitions to become “a one-stop shop for businesses looking to move online or grow their online offerings.”
“The acquisition of the [PIM] Jasper’s assets highlight our strategy of moving further up the payments value chain by adding additional software that enables companies to build better online products and get to market faster,” said Pamela Draper, president of DCPayments, in a blog post. LinkedIn last week.
Jasper’s decision to sell its operating business comes after a period of financial difficulty, which the company described as “challenging operating conditions” in a June report declarationIn December 2022, Jasper, which trades on the TSX Venture Exchange under the ticker JPIM, began a “transformation plan” aimed at reducing operating expenses and increasing revenue.
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Since then, the company has seen several leadership changes. Gerry Hurlow stepped down as CEO in November 2023, and Sean Coutts served as interim CEO until CFO Ken Gutierrez took over the interim position that same month. Gutierrez left his role at Jasper in April 2024, along with board chairman Jeff Klam.
The TSXV suspended trading in Jasper in April 2024, given the company’s plans to sell its PIM business. In its June filing, Jasper said the decision to divest its PIM business was the result of a review conducted over several months, initially focused on organizational changes Jasper could make to continue operating the business. Jasper said it was “unable to achieve its objectives in this regard” and was “forced to explore other strategic alternatives.”
“We believe that [DCPayments] “It is well equipped to continue to provide excellent service to our customers and to continue to operate our excellent PIM platform,” Mag Saad, chairman of Jasper’s board of directors, said in the statement.
Jasper will remain a reporting issuer in the provinces of British Columbia, Alberta and Ontario, according to a statement from DCPayments, but now has “no active business or assets other than its equity interest in JISI,” as well as its rights to receive future earnout payments from the acquisition.
Jasper is far from the only public Canadian tech company to have run into trouble this year. A growing number of companies have sought to go private in recent months, including Clouds, MDF Trade, True context, Q4 Inc., BBTV ParticipationsAND Dialogue Health Technologies.
Featured image courtesy DisinfectPhoto by CardMapr.nl.