Vancouver, British Columbia – Innovative mobile app developer Fundamental Applications beefed up its social messaging expertise on Tuesday, announcing a deal to acquire and incorporate the assets of rival app developer Foro Technologies.
Foro holds intellectual property and rights for two organically built applications including Truth, which was a Top 100 property among social messaging apps in the iTunes store in 2014. Truth, described as a market leader for spontaneity, clean development and rapid growth, has more than 130,000 users and attracted an even greater number of downloads.
Vancouver-based Fundamental (CSE:FUN) will incorporate Truth with its own anonymity app Serum — which enables users to post questions and have text conversations with a group of their friends anonymously — to create Truth 2.0.
Foro, which joined Montreal-based digital tech business accelerator FounderFuel in 2014, has described Truth as superior to the “Twitter-esque broadcasting model of recent anonymous apps.”
During the public launch in spring 2014 Foro said “Truth is about messaging with people who you actually know and care about: the people who are in your address book. The result is a powerful one-on-one communication platform which is far more engaging and meaningful than anything we have seen out there.”
Fundamental, which is focused on app development for the Millennial age demographic, launched Serum in December, 2014. It describes Serum as an “innovative and unique mobile chat application” enabling users to post questions and have text conversations with a group of their friends anonymously. “Nobody involved in the conversation is aware of who in the group is responding.”
Serum also provides user control over conversations they initiate, such as adding or removing participants — fulfilling Fundamental’s ambition to provide social messaging products with an anti-bullying component.
The deal struck between Fundamental and Foro involves the signing of a non-binding Letter of Intent. The deal puts together the product development teams of Foro and Fundamental, and gives Foro co-founder Ali Saheli a senior advisory role with Fundamental.
“This acquisition will take Fundamental to the next level overnight,” said Justin Rasekh, Fundamental CEO, in a news release. “Not only are we picking up world class intellectual property, but inheriting some top talent within the sector.
“As Fundamental moves into the acquisition phase of its business plan, we could not be happier to have a brand as well known as Truth in our portfolio. Rounding out the senior management, we are very happy to have Mr. Saheli on our board of advisors to help in the growth of Truth and any other app we have or will be acquiring.”
The Letter of Interest, outlining the general terms, and conditions on which Fundamental will acquire 100 per cent of the issued shares in the capital of Foro, was negotiated at arm’s length. It took effect January 18, 2015, and is expected to be superseded by a definitive agreement to be signed by the parties.
In addition to Truth, the deal brings Fundamental the eponymously named “Foro” student marketplace app. “Foro” is an iPhone app enabling university and college students to easily trade or sell items that they no longer need, but which other students might want — such as bikes, furniture, textbooks, and electronics.
Students can log items into the app in less than 10 seconds and then connect with other students at the same school who have the app. “Foro provides a great buying and selling experience where students know who they’re dealing with, which school they attend, and how many mutual Facebook friends they have,” Fundamental stated in the release.
Fundamental Applications Corp. was founded in 2014 to launch innovative mobile applications targeting Millennials — those born between 1980 and 2000 into a digital world with significant discretionary income. The company’s business plans is to continue to expand the Serum user base and deploy it as a springboard to launch additional apps targeting privacy, anonymity and chat.