The Digitalx Ltd (ASX: DCC) share price is soaring following the announcement of a new acquisition.
The technology and investment company has signed a business sale and asset agreement to acquire Sell My Shares, an online share trade execution service.
Following the company's release, the DigitalX share price has gained an impressive 7.46%. Right now, shares in the company are swapping hands for 7.2 cents apiece.
Let's take a closer look at the news driving the DigitalX share price higher today.
DigitalX's new acquisition
The DigitalX share price is surging following news it is set to acquire Sell My Shares.
According to DigitalX, Sell My Shares represents a channel for it to obtain new customers. Sell My Shares has conducted $300 million worth of trades for 42,000 Australians since 2013.
The acquisition will cost DigitalX $1.64 million upfront. The company will also make a deferred $250,000 consideration subject to performance milestones.
Following the acquisition, Sell My Shares will be integrated into DigitalX's Drawbridge product.
Drawbridge provides listed companies with the means to manage internal trading of their securities.
DigitalX states the acquisition of Sell My Shares will see Drawbridge accelerate its commercial development and gain a compliant way for its customers' employees to trade shares.
Additionally, the company noted it has identified several ways to better the Sell My Shares business and profitability. Some of the ways in which DigitalX plans to grow Sell My Shares include enhancing its market clearing and settlement technologies.
DigitalX share price snapshot
Despite today's gains, the DigitalX share price has been struggling on the ASX lately.
It has fallen 28% since the start of 2021. However, it is currently 80% higher than it was this time last year.
At its current share price, the company has a market capitalisation of around $53.3 million. It has approximately 739 million shares outstanding.
