It has been yet another day of gains for the Big Un Ltd (ASX: BIG) share price.
The video technology company’s shares are up almost 9% to a record high of $4.35 in morning trade.
Why have its shares rocketed higher?
This morning Big Un announced that it has agreed to acquire United States-based company Tipsly for a consideration of A$4.2 million comprising cash and Big Un shares.
According to the release, Tipsly owns a consumer app and platform developed for the U.S. drink and hospitality space. Its sophisticated mobile application code provides a white label solution and is being incorporated into the current Big Review TV consumer video review platform and app.
Management expects the acquisition to provide the company with a database of over 140,000 small to medium sized enterprises in the U.S. hospitality vertical and a minimum of US$12 million of advertising revenue.
As well as small and medium sized businesses, the app has a partnership with global ride sharing giant Uber. This will now mean that users of the Big Review TV app will be able to access an Uber ride from within the app and be rewarded with Uber credits when they make a video review of a business.
The acquisition is still subject to shareholder and regulatory approval if required.
Should you invest?
I’ve been very impressed with Big Un this year and continue to see a lot of value in its shares despite its incredible 1,778% share price gain.
In my opinion Big Un is one of the top tech shares on the market and I’m surprised that it continues to fly under the radar of most investors. I would put it up there with Altium Limited (ASX: ALU) and Aconex Ltd (ASX: ACX) in terms of growth potential and quality.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of ACONEX FPO and Altium. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.