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Skyfii (ASX:SKF) share price falls 7% after CrowdVision acquisition

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The Skyfii Ltd (ASX: SKF) share price is falling today after the company announced it acquired pedestrian analytics company CrowdVision with $10 million in capital raising.

The Skyfii share price has fallen 7.5% to 18.5 cents per share. 

Skyfii is a data, marketing, communication and automation intelligence platform built for physical venues. The company’s flagship offering is its cloud-hosted proprietary platform, which collects and analyses data from smart devices to assist venues in improving operations, marketing initiatives and customer experiences.

Skyfii capital raising and CrowdVision venture

It was revealed six days ago that Australian company Skyfii, which is headquartered in New South Wales, would issue more than 60 million shares at 16.5 cents per share in order to buy U.S. company CrowdVision. 

CrowdVision is a North American-based company specialising in automated pedestrian analytics, which includes the tracking of people flow around a venue. It produces insights focusing on airports, stadiums, exhibition centres, and large-scale resort hotels and casinos.

Skyfii is operating in more than 11,000 venues across 35 countries with 59 employees and has an annual recurring revenue (ARR) of $11 million. CrowdVision will add ARR of $1.7 million and has a total enterprise value of approximately $9 million, but this hasn’t had a positive impact on the Skyfii share price today.

Skyfii is aiming to use its CrowdVision acquisition to better deliver a range of data intelligence products to suit the requirements of airports, stadiums, smart cities and universities.

One of the key aims of this deal is to expand into airports, with large growth expected in this sector following completion of the COVID-19 vaccine rollout. Skyfii is used in 30 airports globally and CrowdVision is in 35, more than doubling the company’s presence in this space. 

CrowdVision is the leading player in the U.S. airport pedestrian analytics space, with contracts covering nine of the country’s 15 largest airports. Skyfii says this industry has “very high barriers to entry” and is hoping this deal will allow it to corner a growing sector.

Skyfii share price snapshot

The Skyfii share price has fallen 15% this week, 9% this month and 5% in 2021. It’s lost ground against the technology sector on the ASX, however, it’s up 85% over the past 12 months.

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Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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