- Baker, a top cannabis tech platform, is acquiring Grassworks, one of it's largest competitors.
- The move puts Baker's product in 850 dispensaries in valuable markets.
- It's a sign of M&A activity heating up in the industry.
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The 'Salesforce of Pot' just announced the latest takeover in the legal cannabis industry
Baker, a top cannabis tech platform, just acquired its largest competitor. And the competition is hot on its heels.
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Baker, a Denver-based customer engagement platform sometimes called the 'Salesforce of Pot', acquired smaller rival Grassworks, in the latest merger in the maturing legal cannabis industry.Both companies are so-called customer relationship management platforms, that help businesses track sales and customer relationships. The move adds 150 dispensary clients to Baker's roster of 700 in US states with legal cannabis as well as a handful of Canadian provinces and firms up Baker's foothold in the Pacific Northwest market.
Cannabis is legal in a number of states, but it's still illegal under federal law, making some investors nervous.
Constellation Brands, the third-largest beer company in the US, in October said it paid $191 million for
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As for the competition, Paxhia said that newer entrants in the cannabis tech space have a "big hill to climb."
"In the end, competition is going to happen as it is a natural part of the business and validating for our industry," Paxhia said. "It's going to be exciting to be front row and watching this industry continue to scale and mature."
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