Denver-based Akerna announced plans to acquire Microsoft ISV 365 Cannabis for $17 million in cash and stock.

365 Cannabis has "85+ clients", according to Akerna's announcement and is generating $8.2 million in LTM revenue, with $5.2 million of that in SaaS revenue and greater than 70% software margins. The deal also includes an additional earnouts of $8 million.

365 Cannabis is built on Dynamics 365 Business Central to offer the cannabis industry an ERP solution that includes cultivation, production, compliance, QC, dispensing & retail, CRM, warehousing, distribution, multi-facility, multi-company, and more.

For Akerna, a publicly traded enterprise software company focused on the cannabis, hemp, and CBD industries, 365 Cannabis broadens their suite with an ERP based on Business Central. The majority of 365 Cannavis's customers appear to be in North America, but they have some in other regions, too.

"With the acquisition of 365 Cannabis, Akerna clients have a choice between all the most popular financial and tax planning systems, now including Microsoft," the company stated in a presentation to investors about the deal.