06 Oct Tracker Ventures to acquire most of Contakt World
TRACKER VENTURES CORP. ANNOUNCES LOI TO ACQUIRE MAJORITY STAKE IN CONTAKT WORLD, AN EMERGING DIGITAL CONTACT TRACING COMPANY
Tracker Ventures Corp. has entered into an arm’s-length non-binding letter of intent to acquire a majority interest in Contakt LLC, a technology company modernizing the contact tracing process through next-generation data integrations, strategic health partnerships and respect for user privacy to empower and build mutual trust within communities. The acquisition is expected to close on or before Dec. 31, 2020, subject to customary closing conditions.
Contakt World’s unique platform acts as a sole source provider of digital contact tracing and ethical health surveillance for government agencies, institutions, enterprises and small businesses. It meets and exceeds the core needs for digital contact tracing as defined by the Centers for Disease Control and Prevention (CDC), while simultaneously protecting user privacy. Contakt World recently announced its inclusion as a globally competitive contact tracing system in a working group publication by the Public Health Informatics Institute, a division of the Task Force for Global Health, which operates in over 150 countries.
Contakt World’s platform will be leveraged to further expand Tracker’s existing suite of blockchain-enabled technologies in the financial and logistics industries. Tracker’s blockchain and risk management platform has been implemented in financial institutions globally. Contakt World’s platform will be integrated to leverage the existing Tracker technology stack, enabling both companies to offer an enterprise-grade, fully secure public health solution. Tracker’s blockchain platform enables secure storage and permission based access of data, and was originally designed for use in the company’s financial risk management solution, as well as its digital asset exchange platform. Under the proposed acquisition, Contakt World will leverage Tracker’s blockchain platform in the deployment of its end-to-end contact tracing solution, retaining privacy and data security for all stakeholders. The proposed acquisition will also enable Tracker to expand its customer base and further monetize its proprietary blockchain platform.
Pursuant to the LOI, the parties intend to negotiate the terms of a definitive agreement, which will provide for, among other things: (i) the acquisition by Tracker of 80.5 per cent of the membership interests in Contakt World in exchange for 14,490,001 common shares of Tracker; and (ii) an advance of up to $1-million to Contakt World prior to, upon or subsequent to closing of the acquisition. There can be no assurance that the definitive agreement will be entered into or that the acquisition will be completed on the terms proposed in the LOI or at all. The parties do not anticipate payment of any finder’s fees in connection with the acquisition. The company does not anticipate any changes to its board of directors or executive officers as a result of this acquisition.
“We are excited to announce the proposed acquisition of Contakt World today,” said Zayn Kalyan, chief technology officer and interim chief financial officer of Tracker. “Tracker’s blockchain platform has been leveraged across industries and given the current, unprecedented public health situation with COVID-19, we are proud to be able to offer a solution in partnership with Contakt World through the intended acquisition. Justin and his team have a robust solution for contact tracing that will seamlessly integrate with Tracker’s platform. With Contakt World’s technologies and relationships within public health and the synergies that Tracker provides, the acquisition enables a go-to-market strategy for Tracker with governments and businesses within their jurisdictions upon closing.”
“I am excited at the opportunity this transaction will bring,” said Justin Beck, chief executive officer of Contakt World. “We are looking forward to working with the Tracker team and we believe our combined efforts will bring about increased visibility, capital formation opportunities, and M&A prospects to the organization.”
“We believe Contakt World is poised to revolutionize the emerging contact tracing industry with our proprietary, privacy-respecting technologies — which continue to see robust inbound interest from the market. Health agencies need trustworthy tools to reach people and places immediately when risk is identified, evidenced by President of the United States Donald J. Trump’s COVID-19 case, and the related problems of contact tracing transmission of the novel coronavirus from the now infamous event at the Rose Garden. We look forward to working with the team at Tracker Ventures to close this transaction and create value for our respective shareholders over the long term,” concluded Mr. Beck.