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DATA Communications Management Corp. Announces Acquisition of Zavy Limited, a SaaS Provider of Social Media Insights and Analytics

  • Zavy’s Software-as-a-Service solution helps businesses optimize their social media performance
  • Expands DCM’s portfolio of marketing technology solutions, and provides entry to North American market for Zavy through DCM’s established client base and commercial sales team

DATA Communications Management Corp. (TSX: DCM; OTCQX: DCMDF) (“DCM” or the “Company”), a leading Canadian provider of print and digital solutions that help simplify complex marketing communications and workflow, announced today that it has acquired 100% of the shares of Zavy Limited (“Zavy”), in an all-cash transaction. Zavy is a New Zealand-based Software-as-a-Service (“SaaS”) marketing technology (“martech”) company that helps companies optimize their social media effectiveness (www.zavy.co).

Zavy is focused on the specialized field of social media analytics and social listening, the process of tracking, measuring, and evaluating social media metrics and data to understand audience engagement, sentiment, and campaign effectiveness. The company uses advanced analytics, AI, and social listening tools to enable brands to extract insights and gain a strategic view of their performance across social platforms.

“As businesses of all sizes devote an increasing share of their marketing budgets to social amplification, the need for advanced social media metrics and analytics is critical to driving business value and ROI,” said Richard Kellam, President & CEO of DCM. “Zavy is well positioned for growth in this fast-paced market, and we are excited to bring the platform to North America to help marketers analyze and optimize their social media activity.”

“This acquisition marks a key strategic addition to our portfolio of martech solutions for DCM’s more than 400 enterprise clients and 2,000 small and medium sized business customers. We believe the Zavy offering will also be attractive to prospective clients seeking to optimize their social media investments. DCM plans to integrate Zavy into its suite of martech offerings designed to help customers simplify complexity and drive productivity in their marketing workflows,” added Mr. Kellam.

With global spending by marketers on social media advertising projected to reach US$219.8 billion in 2024, and to grow at a CAGR of 3.86% to $255.8 billion by 2028, according to Statista, the need for social media analytics is becoming more critical. This is reflected in significant growth in the social media analytics solutions and services market, which is expected to grow at a 24.9% CAGR over the next 5 years from US$4.8 billion in 2023 to US$14.7 billion in 2028, according to MarketsandMarkets.

Zavy was founded by the Australia and New Zealand-based insights agency The Research Agency Limited (“TRA”) and has a leading presence in the Australasia market with a strong client roster including companies in the financial services and retail sectors.

“We are very excited to be joining the DCM team,” said David Bowes, co-founder and Managing Director of Zavy. “With DCM’s large enterprise client base, highly skilled commercial sales team and deep digital experience, Zavy will be well positioned to accelerate our business in the North American market. As we turn the page to begin a new chapter for Zavy, I would like to acknowledge and thank the TRA team for the guidance and support it has provided through the years to establish and support the growth of the Zavy business.”

About DATA Communications Management Corp.

DCM is a leading Canadian tech-enabled provider of print and digital solutions that help simplify complex marketing communications and operations workflow. DCM serves over 2,500 clients including 70 of the 100 largest Canadian corporations and many leading government agencies. Our core strength lies in delivering individualized services to our clients that simplify their communications, including customized printing, highly personalized marketing communications, campaign management, digital signage and digital asset management. From omnichannel marketing campaigns to large-scale print and digital workflows, our goal is to make complex tasks surprisingly simple, allowing our clients to focus on what they do best.

Additional information relating to DATA Communications Management Corp. is available on www.datacm.com, and in the disclosure documents filed by DATA Communications Management Corp. on SEDAR+ at www.sedarplus.ca.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release constitute “forward-looking” statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of DCM, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward-looking statements. When used in this press release, words such as “may”, “would”, “could”, “will”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan”, and other similar expressions are intended to identify forward-looking statements. These statements reflect DCM’s current views regarding future events and operating performance, are based on information currently available to DCM, and speak only as of the date of this press release.

Some of the specific forward-looking statements in this press release include, but are not limited to, statements with respect to: DCM’s plan to integrate Zavy into DCM’s suite of martech offerings; spending by marketers on social media advertising; growth in the social media analytics solutions and services market; and DCM’s ability to achieve its strategic and financial objectives in the future.

These forward-looking statements involve a number of risks, uncertainties, and assumptions made by DCM including, without limitation: DCM’s operating results are sensitive to economic conditions, which can have a significant impact on DCM, and uncertain economic conditions may have a material adverse effect on DCM’s business, results of operations and financial condition; DCM’s ability to successfully integrate the Zavy business into DCM and realize anticipated benefits from the acquisition of Zavy, including, without limitation, DCM’s ability to successfully integrate Zavy into DCM’s suite of martech offerings and achieve revenue and profitability growth from an enhanced offering of products and services; expected spending by marketers on social media advertising; and expected growth in the social media analytics solutions and services market. They should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Many factors could cause the actual results, performance, objectives or achievements of DCM to be materially different from any future results, performance, objectives or achievements that may be expressed or implied by such forward-looking statements. Additional factors are discussed under the headings "Liquidity and capital resources" and “Risks and Uncertainties” in DCM’s Management Discussion and Analysis and in DCM’s other publicly available disclosure documents, as filed by DCM on SEDAR+ (www.sedarplus.ca).

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, DCM does not intend and does not assume any obligation to update these forward-looking statements.

Contacts

For further information, contact

Mr. Richard Kellam

President and Chief Executive Officer DATA Communications Management Corp.

Tel: (905) 791-3151

Mr. James E. Lorimer

Chief Financial Officer

DATA Communications Management Corp.

Tel: (905) 791-3151

ir@datacm.com

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