Accredited Solutions, Inc. (OTC: ASII), parent company of Diamond Creek Water, has executed an Indication of Interest to acquire a leading US-based B2B distributor of third-party e-gift cards, signaling a strategic shift toward the fintech sector. The target company generated $33.7 million in sales in 2023 and projects a $42.5 million revenue run-rate for 2024, operating profitably on a net income basis, making it an attractive acquisition prospect for Accredited Solutions. This potential acquisition aligns with the company's growth strategy to leverage synergistic opportunities, with plans to inject additional capital and resources while integrating marketing and administrative functions to drive efficiency.
Eduardo Brito, CEO of Accredited Solutions, Inc., stated that the combination of Accredited Solutions' resources and the target's established fintech presence provides an opportunity to drive significant growth and value, though the company remains cautious in projections while confident in accelerating their 5-year growth plan. The acquisition process will advance to a more binding Letter of Intent once Accredited Solutions confirms its ability to complete a timely audit of the target company, reflecting commitment to due diligence and transparency. Upon successful audit completion, the company anticipates moving toward closing the deal under established LOI terms, maintaining careful evaluation until the audit nears completion.
The potential acquisition holds significant implications for the fintech industry's B2B e-gift card distribution sector, as Accredited Solutions plans to develop new products and APIs that could enable integration with other fintech companies, potentially disrupting current market dynamics. The company's intention to explore new international markets through this acquisition suggests a broader vision for global expansion in fintech, while for investors and industry observers, this move represents noteworthy development in traditional business convergence with fintech operations. Successful integration could serve as a case study for similar future acquisitions, potentially inspiring other companies to explore cross-sector opportunities.
As the deal progresses, stakeholders will monitor the audit process outcome and subsequent acquisition finalization announcements, with success potentially significantly impacting Accredited Solutions' market position and financial performance. The company's website at https://www.diamondcreekwater.com provides additional information about its operations, though the acquisition represents a distinct strategic direction beyond its existing water business. This fintech expansion through acquisition demonstrates how companies are adapting to evolving digital payment landscapes while seeking profitable growth opportunities in adjacent sectors.
