ZenaTech expands its SaaS division by acquiring NOW Solutions, gaining government and public sector clients. Discover the strategic implications and future outlook.
ZenaTech, Inc. (NASDAQ: ZENA), a technology company specializing in AI drones, Drone as a Service (DaaS), enterprise SaaS, and Quantum Computing solutions, has announced the acquisition of NOW Solutions Inc., a Richardson, Texas-based HR and payroll software company. The acquisition was completed on April 14, 2026, and marks a significant expansion of ZenaTech's Enterprise SaaS division.
The acquisition involved all material assets of NOW Solutions, which has a long-standing history of serving customers in the government and public sectors across the U.S. and Canada, including schools, hospitals, and municipal organizations. ZenaTech acquired these assets through a bankruptcy sale process. NOW Solutions provides a Human Resource Management System (HRMS) for small to mid-market clients with 1,000 to 20,000 employees. This acquisition adds a recurring revenue business, strengthening ZenaTech's portfolio of software brands.
According to Shaun Passley, Ph.D., CEO of ZenaTech, this acquisition strengthens and expands ZenaTech’s Enterprise SaaS division. He emphasized the company's commitment to optimizing customer value and growing the customer base, highlighting the importance of adding a significant base of government and public sector clients. The goal is to enhance the durability of revenue streams and underpin consistent growth for investors.
NOW Solutions offers HR and payroll solutions through its web-based platform, emPath. This platform unifies human resources and payroll functions into a single system. emPath allows organizations to manage employee compensation, skills tracking, absence management, performance reviews, and workforce analytics. It also offers employee self-service capabilities to empower employees and reduce administrative tasks.
This acquisition is a strategic move for ZenaTech. The HRIS software market is a multi-billion dollar industry, growing steadily each year. By acquiring NOW Solutions, ZenaTech gains access to established government and public sector clients, providing a stable revenue stream. This diversifies ZenaTech's SaaS offerings and could lead to cross-selling opportunities with its existing technology solutions.
In our opinion, this acquisition is a smart play by ZenaTech. The company is leveraging a bankruptcy sale to acquire a business with established customer relationships and a proven track record. The recurring revenue model of NOW Solutions' HR and payroll software is particularly attractive, providing a predictable income stream for ZenaTech.
The focus on government and public sector clients is also noteworthy. These clients are often less price-sensitive and more likely to maintain long-term relationships, further stabilizing ZenaTech's revenue. However, integrating NOW Solutions into ZenaTech's existing infrastructure will be crucial. Success depends on maintaining customer satisfaction and leveraging synergies between the two companies.
We believe that ZenaTech's acquisition of NOW Solutions has the potential to be a successful venture. The company's focus on government and public sector clients, combined with the recurring revenue model of HRIS software, positions it for sustained growth. This could impact ZenaTech's stock performance positively as the market recognizes the strategic value of this acquisition.
In the future, we expect to see ZenaTech further expand its Enterprise SaaS division through additional acquisitions and organic growth. The company's expertise in AI, drones, and quantum computing could also lead to innovative solutions that integrate with its HRIS software, creating a competitive advantage.
