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Acquisition of U.S. maps marketing business is expected to add approximately $2 million in annual recurring revenue and $900,000 in EBIT
Locafy Limited (Nasdaq: LCFY, LCFYW) has entered into a definitive agreement to acquire the assets and customer base of Map Labs, a U.S.-based maps marketing software and services business, for total potential cash consideration of up to US$3 million.
The transaction is expected to close on or before December 31, 2026, subject to customary closing conditions. Based on unaudited management estimates, Map Labs is expected to generate approximately US$2 million in annual recurring revenue (ARR) and US$900,000 in EBIT during calendar year 2026, representing an estimated 45% EBIT margin.
Acquisition Adds Established U.S. Customer Base
Founded in 2014, Map Labs provides maps marketing and location-based services to multi-location businesses across industries including restaurants, hospitality, healthcare, retail, fitness and professional services.
Its offering includes Google Business Profile management, Local Pack optimization, Maps advertising, listing management, bulk profile management, performance reporting and location-level marketing services.
The business has more than 10,000 end customers, including a Fortune 100 company, giving Locafy an established base of U.S. multi-location customers and an expanded presence in Maps marketing.
Deal Structure Links Part of Consideration to Growth
The acquisition is structured around an upfront payment of US$2 million, with another US$1 million tied to future revenue performance.
Locafy will pay an additional US$500,000 if Map Labs generates more than US$3.84 million in revenue during 2027. A further US$500,000 will be payable if revenue exceeds US$4.76 million during 2028.
Locafy said the structure ties a portion of the purchase price to the acquired business achieving future growth targets. The company intends to fund the upfront consideration primarily through a debt facility, with no Locafy securities being issued as part of the transaction.
Automation Planned to Improve Operating Efficiency
Following closing, Locafy plans to begin integrating Map Labs’ operations, with an initial focus on customer continuity and workflow automation.
During the first 90 days, the company expects to introduce its automation technologies into selected Map Labs processes to reduce manual work, increase service capacity and improve operating efficiency.
“The operational fit between the two businesses is strong,” said Jason Jackson, chief operating officer of Locafy. “We expect that our first priority will be a seamless transition for Map Labs customers.”
Locafy expects the combination of Map Labs’ existing service model with its automation and scalable delivery infrastructure to create opportunities for margin expansion.
Cross-Selling Expands SEO and AEO Opportunity
The acquisition also gives Locafy an opportunity to introduce additional products across the combined customer base.
Map Labs customers could gain access to Locafy’s broader portfolio of SEO, AEO, citation services, Localizer solutions and Proteus AI website generation technology. In return, Locafy plans to offer Maps marketing, Google Business Profile management and Local Pack capabilities to relevant customers within its existing base.
The companies expect these cross-selling opportunities to create additional revenue potential without relying exclusively on new customer acquisition.
Locafy Targets Further U.S. Expansion
Gavin Burnett, chief executive officer of Locafy, said the acquisition will expand the company’s U.S. customer base while adding a profitable operating platform.
“We believe Map Labs will add an established U.S. customer base and profitable operating platform that increases our scale,” Burnett said, adding that the performance-based structure aligns part of the purchase price with future revenue growth.
The acquisition represents another step in Locafy’s strategy to expand its U.S. presence while combining location-based marketing, SEO, AEO and automation capabilities under a broader platform.
