Cool Holdings Inc (NASDAQ: AWSM) is having a relatively strong start to the trading session, trading up more than 3% early on. The gains come after the company announced an acquisition, leading to excitement. Here’s what’s going on:
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AWSM Stock Heads Up On Acquisition News
In a press release issued early this morning, Cool Holdings announced that it has acquired Simply Mac, Inc. Simply Mac was previously a subsidiary of GameStop.
Today, Simply Mac is a chain of 41 retail stores across 18 states within the US. Importantly, Simply Mac is an authorized reseller of Apple Products and the largest Apple Premier Partner in the United States.
The company also has 16 existing OneClick stores and operates a total retail footprint of 57 stores across the United States, Argentina and the Dominican Republic.
In a statement, Rein Voigt, President and CEO at AWSM, had the following to offer with regard to the acquisition:
We have been working on the Simply Mac acquisition for some time, and are extremely pleased to have it completed as a critical milestone as part of our retail expansion plans. Simply Mac is of great strategic importance to our Company, and we expect it will be the foundation for us to achieve profitability in the future. We intend to adopt the vision, values and mission statement upon which Simply Mac was founded in all our existing stores, and in those we may acquire in the future. Customer satisfaction is paramount, and our vision is to be America’s premier technology retailer. One of the most important segments of Simply Mac’s business is service, and the support of Apple products in cities where Apple has no presence. Located primarily in smaller cities close to a university, Simply Mac is an important provider of Apple authorized service in the U.S. We welcome the dedicated employees of Simply Mac to our team, and look forward to working with them to extend the Simply Mac name to more cities across the U.S.
Three Reasons Investors Are Excited Here
Ultimately, there are several reasons that AWSM investors are excited about this news. The three most important are as follows:
Reason #1: Revenue Appreciation
With the acquisition of Simply Mac, Cool Holdings now owns the company’s retail footprint of more than 50 stores across 3 different countries. Most of these stores are well established, being in operation for years at this point.
Of course, Simply Mac wouldn’t be able to survive with such a footprint if the company wasn’t generating revenue. So, the acquisition means that AWSM investors can expect to see strong revenue growth ahead.
Click below to go to reason #2: