Mobile technology and marketing company SinglePoint Inc. announced it has signed a letter of intent to purchase Drive Media Network LLC's existing digital signage network. SinglePoint also anticipates having Drive Media's management team join the SinglePoint team and bring its more than 30 years of collective experience designing, building, operating and programming digital signage networks nationwide, the company said.
The acquisition, which will consist of cash and stock, advances SinglePoint's strategy to offer a comprehensive package of marketing, CRM, payments and other relevant solutions to its clientele including those clients in the medical marijuana industry. Initially, SinglePoint plans to install Drive Media screens in medical and recreational cannabis dispensaries nationwide in order to educate customers and reduce excessive wait times of up to 45 minutes. SinglePoint anticipates this initiative will generate revenue through screen placements and advertising sales.
The acquisition will create immediate additional revenues to SinglePoint from existing Drive Media contracts, the announcement said, and significantly increase the company's bottom line and overall shareholder value. Projections by Drive Media show more than $1 million in net income in five years with the expansion of the new SinglePoint Network. Included in these projections are current, active contracts including Sonora Quest Laboratories (through 2017) and existing advertisers in the medical services area including Barnet Dulaney Perkins Eye Center, a statewide eye care network.
"The acquisition of Drive Media will greatly expand our service offerings to our existing client base and help us gain a foothold into the medical marijuana industry," SinglePoint CEO Greg Lambrecht said in the announcement. "By offering cannabis dispensaries a full suite of marketing, advertising, payments and other services, SinglePoint can help improve dispensaries' business operations, build stronger customer relationships as well as increase sales and revenue. It's important to note that dispensaries are a primary objective; however we intend to market screens and advertising opportunities in various industries."
"We're really excited by SinglePoint's vision to leverage our digital display expertise for the as-yet-untapped medical marijuana industry, which could potentially put our screens in thousands of legal dispensaries nationwide," said Ronald Gross, CEO for Drive Media Networks, in the announcement. "There are also some great synergies between our displays and SinglePoint's mobile marketing and payments offerings, including providing viewers with an immediate response and payment mechanism for the ads they view."