Acquisition of U.S. maps marketing business is expected to add approximately $2 million in annual recurring revenue and $900,000 in EBIT while expanding Locafy’s multi-location customer base

Locafy Limited (Nasdaq: LCFY, LCFYW) has entered into a definitive agreement to acquire the assets and customer base of Map Labs, a U.S.-based maps marketing software and services company, in a transaction valued at up to US$3 million.

The acquisition is expected to strengthen Locafy’s U.S. presence and expand its customer base while adding Maps marketing capabilities to its existing SEO and Answer Engine Optimization (AEO) portfolio.

The transaction is expected to close on or before December 31, 2026, subject to customary closing conditions.

Acquisition Expected to Add $2 Million in ARR

Based on unaudited management estimates, Map Labs is expected to generate approximately US$2 million in annual recurring revenue (ARR) and approximately US$900,000 in EBIT during calendar year 2026.

That would represent an estimated EBIT margin of approximately 45%. Locafy said the transaction values the acquired business at approximately 2.2 times EBIT.

The consideration includes US$2 million payable upfront, with an additional US$1 million tied to future revenue performance.

A further US$500,000 would become payable if Map Labs generates more than US$3.84 million in 2027 revenue, while another US$500,000 would be payable if revenue exceeds US$4.76 million in 2028.

Locafy intends to fund the upfront payment primarily through a debt facility and said no company securities will be issued as acquisition consideration.

Map Labs Adds Multi-Location U.S. Customers

Founded in 2014, Map Labs provides marketing software and services for businesses with multiple locations, helping them manage visibility across Google Search, Google Maps and Apple Maps.

Its offering includes Google Business Profile management, Local Pack optimization, Maps advertising, listing management, bulk profile management, performance reporting and location-level marketing services.

Map Labs serves customers in sectors including restaurants, hospitality, healthcare, retail, fitness and professional services. Locafy said the business has more than 10,000 end customers, including a Fortune 100 company.

Automation Planned to Improve Operating Efficiency

Locafy plans to begin integrating Map Labs' operations following completion of the acquisition.

During the first 90 days, the company expects to introduce selected automation technologies into Map Labs workflows. The goal is to reduce manual processes, improve service delivery and increase operating leverage.

“The operational fit between the two businesses is strong,” said Jason Jackson, Chief Operating Officer of Locafy. “We expect that our first priority will be a seamless transition for Map Labs customers. We intend to then apply Locafy’s automation and scalable delivery systems to Map Labs’ proven service model to reduce manual processes, increase capacity and improve operating leverage.”

Cross-Selling Creates Additional Growth Potential

Locafy also expects the acquisition to create cross-selling opportunities across the two customer bases.

Map Labs' Google Business Profile management, Maps marketing and Local Pack capabilities could be introduced to relevant Locafy customers. In turn, Locafy plans to offer suitable Map Labs customers access to its SEO and citation services, Localizer solutions, AEO technologies and Proteus AI website generation platform.

“We believe this acquisition creates a broader and more complete customer proposition,” said Liz Willits, Chief Marketing Officer of Locafy. “We can introduce Maps marketing and Google Business Profile capabilities to Locafy customers while giving Map Labs customers access to our SEO, AEO, citation, and AI-powered website solutions.”

Locafy Targets U.S. Growth

Locafy CEO Gavin Burnett described the transaction as an important step in expanding the company's scale in the U.S. market.

The acquisition combines Map Labs' established multi-location customer base and Maps marketing capabilities with Locafy's SEO, AEO, citation, automation and AI-powered website technologies.

Locafy expects the combination of recurring revenue, automation initiatives and cross-selling to provide additional opportunities for revenue growth and operating margin expansion as the two businesses are integrated.