Wangle Technologies goes shopping; buys grocery comparison site Frugl
Special Report: Data solutions provider Wangle Technologies is firming up its grasp of the $2 billion consumer behavioural data market with the acquisition of grocery comparison site Frugl.
Frugl is an advanced analytics platform that captures supermarket product and pricing data in real time and then commercialises the intelligence.
The business has spent the past three years developing its data capture and analysis engine – so it’s easy to see why it’s captured Wangle’s attention.
Wangle (ASX:WGL) is already known for two key solutions – Wangle VPN, a secure network that serves as the foundation for its data analysis products, and Wangle Family Insights, a cybersecurity product that uses real-time behavioural data and analysis to send alerts and educational resources to parents.
Wangle sees the acquisition as a natural fit as both businesses target similar market segments, gather online behavioural data across multiple device types in real-time and are capable of commericialsing the resulting insights.
The deal, for which payment is exclusively performance-based, will give Wangle access to Frugl’s tier one, national chain clients.
The Frugl business will also be integrated into Wangle’s existing human resource and technology infrastructure, helping Wangle strengthen its hold in the behavioural data market and shift from product development to data-driven value creation.
This is not the first foray into data commercialisation for Wangle’s CEO Sean Smith, who has been building commercial data models for the past decade with executive roles at Woolworths, Orbitz Worldwide and Ticketek.
He says the complimentary business’ share a number core requirements and capabilities to make each of them a success.
“There are clear synergies between the company’s Family Insights business unit and Frugl’s technology offerings,” said Wangle chief Sean Smith.
“Our recent transition has allowed us to properly develop our technical capability, which will be well placed to support the complimentary requirements of our core business activities, namely front-end website and app development to attract and engage audiences, real-time data capture technologies and advanced data science and analytics to unlock real value.”
Breaking down the details
The acquisition is another win for Wangle which recently signed a deal to put its cyber-security service in front of hundreds of thousands of Australian parents.
The company also made headlines after luring well-known Yojee backer Mat Walker as its corporate director.
This latest deal is set to be finalised in early December and will be funded by a $900,000 placement to sophisticated and professional investors.
Deferred consideration of four tranches of 500 million performance shares will be payable upon Frugl achieving certain revenue milestones by 2021 and 2022, maximising the potential return for existing shareholders.
Earlier this year, Frugl engaged a top-tier national grocery chain as its first commercial data insights customer but put the project on hold due to a funding shortfall.
Wangle plans to kick things back into high-gear quickly, once the acquisition is finalised.
“The acquisition and development of Frugl will lead to further advances in data science across both business units, including further development of machine learning capabilities across both products to enable significant advances to each of their respective data analysis verticals.”
To reflect the businesses renewed focus on data, Wangle also announced plans to change its name to Family Insights Group Limited, which will go to a shareholders’ vote.
Wangle Technologies is a Stockhead advertiser.