Nixxy, Inc. (NASDAQ:NIXX) shares rocketed on Thursday after the company provided updates on its business.
This includes acquisition strategy in traditional markets and enhancing operations through technology and data analytics. Nixxy's strategy involves acquiring established standalone businesses demonstrating stable operations and profitability.
The company aims to acquire businesses with annual net revenues between $10 million and $100 million and gross profit margins of at least 40%.
The company targets industries that are primed for digital transformation but have not yet undergone significant technological disruption.
The company has signed an exclusive global licensing agreement with GoLogiq, Inc. for the Radix AI platform, which helps small businesses optimize processes like inventory and order management.
Nixxy's three-year goal is to reach an enterprise value of over $1 billion, contingent on market conditions and successful execution of its strategy.
The company is in advanced negotiations with seven potential acquisition targets that meet its criteria and expects to make a significant announcement soon, pending final agreements.
In addition, Nixxy disclosed that it has signed a letter of intent to acquire a privately held wholesale gifts business, which aligns with its strategy. The estimated preliminary target valuation is $6 million.
The target company's Gross Merchandise Volume (GMV) is projected to hit $66 million, with net revenues of $10 million in 2024, contingent on the successful acquisition and integration. Profits are anticipated to be accretive, though they remain subject to market conditions and other variables.
Price Action: NIXX shares are up 120% at $5.215 at the last check Thursday.
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