REFFIND (RFN: ASX), an Australian mobile employee engagement app for smartphones, yesterday announced that it has acquired four-year-old employee peer recognition and reward start-up WooBoard.

WooBoard has 46 clients in Europe, Asia Pacific, and the US, providing REFFIND with immediate entry into the US market. The acquisition complements REFFIND’s existing suite of products and the company’s desire to address the widespread issue of a lack of employee engagement.

WooBoard is used internally by companies to allow employees to send recognition and share updates instantly using a gamification, social cloud-based platform. It is driven by a comprehensive points system that rewards the employee for all engagement actions; including sending recognition, sharing information, earning badges, and connecting with colleagues.

The points can then be redeemed using some popular online retailers.

The total consideration of AUD 1.25 million (USD 879,788) is entirely in REFFIND scrip (a temporary document representing a fraction of a share), with the intention of conserving cash for REFFIND’s further expansion plans. 

In addition to the AUD 1.25 million REFFIND scrip to be issued six months following the completion of the acquisition; REFFIND will also pay an earn-out between 0.9 million and 2.9 million REFFIND shares. This will be assessed on a sliding scale 12 months from completion and is depending on WooBoard achieving set revenue milestones.

Jamie Pride, Co-Founder and Managing Director of REFFIND, commented: “The deal is transformational for REFFIND, as it provides an immediate global presence, including within the pivotal US market. We’ve been familiar with the WooBoard business for some time and it complements our existing products perfectly and further positions REFFIND as a leader in providing great employee experiences.”

In trading yesterday, the company’s share price closed up 7.1% at AUD 0.98 (USD 0.69). Based on its current share price, REFFIND has a market value of AUD 97.5 million (USD 68.6 million).