Shares of WM Technology, Inc. (MAPS) jumped 2.3% on the announcement of its acquisition of Sprout, a cloud-based customer relationship management (CRM) and marketing platform for the cannabis industry.
MAPS is a technology and software infrastructure provider for the cannabis industry. Notably, the acquisition of Sprout makes MAPS one of the most wide-ranging software platforms available in the cannabis industry and strengthens its position between retailers and consumers in the fast-growing legal cannabis market.
Furthermore, Sprout’s omnichannel software platform offers a comprehensive suite of CRM and marketing, third-party integrations, a targeted messaging system across text, email, and in-app, a loyalty program, compliance modules, and analytics.
WM Technology, previously known as Weedmaps, became a public company by way of a SPAC merger with Silver Spike Acquisition Corp. and started trading on June 16, 2021. (See WM Technology stock charts on TipRanks)
Commenting on the deal, Chris Beals, CEO and Chairman of WM Technology said, “With the addition of Sprout, we are one step closer to realizing this vision of providing an all-in-one seamless and integrated solution to run, manage, and grow one’s cannabis business…This acquisition will allow our clients to better target, reach, acquire and retain customers at scale.”
Following the acquisition news, Piper Sandler analyst Thomas Champion maintained a Buy rating on the stock with a price target of $16, implying 11% upside potential to current levels.
Champion believes that the acquisition will enhance WM Technology’s software platform and is in line with the company’s goal of building out the “Business in a Box offering”.
With 6 unanimous Buys, the stock commands a Strong Buy consensus rating. The average WM Technology price target of $18.75 implies 30.1% upside potential to current levels.