In December, Relevium Technologies (RLV:TSXV) penned a binding letter of intent to acquire the assets of nutraceutical company BioGanix Ltd. for US$4.25 million. The transaction is expected to close in March. The purchase is the first for Relevium as part of a strategy to consolidate e-commerce assets in the health and wellness space and roll them out into different markets.

The company is meticulously looking for acquisitions. An ideal buyout candidate has at least one product being sold via one platform in one market. Aiming for this type of company aligns Relevium to build its brand and scale sales in an online retail market expected to generate US$523 billion in sales by 2020.

Forrester Research estimates that more than 206 million shoppers will be shopping online by that time. Industry stalwarts like Amazon (AMZN) and Alibaba (BABA) control the lion’s share of sales through their third-party seller platforms while Walmart (WMT) is attempting to make a push into the space with their 2016 acquisition of Jet.com. Other than that, though, the industry is extremely fragmented, including subsectors like the US$39 billion pain relief market.

Based upon these parameters, BioGanix was a near perfect business for Relevium to acquire. The company has more than two dozen marketed nutraceuticals being sold nearly exclusively in the U.S., primarily through Amazon.com and the BioGanix website.

At approximately US$4 million in annual revenue, the Houston-based company was small enough for Relevium to get financed quickly, yet big enough to have a meaningful, immediate impact for Relevium. Relevium, which is headquartered in Montreal, Canada, did not acquire any of the debt of BioGanix, only all the assets related to the BioGanix product line.

The acquisition also brings significant infrastructure for Relevium, including a contract manufacturing organization that can handle production, quality control and any necessary FDA oversight, among other things.

Operating exclusively online provides BioGanix with high margins and low costs. In the 12 months through September 2016, the company was profitable, with net earnings of US$1.3 million. This means that Relevium bought the company for about 3.1x earnings, arguably a good deal by just about any metric.

BioGanix will become a part of the Relevium E-Health Inc. unit, an umbrella company designated for consolidating e-commerce businesses focused on health and wellness products, including nutraceuticals, supplements and other paramedic products.

The company says it has identified and maintains a pipeline of acquisition targets with current estimated revenues of over $100 million. While it is difficult to estimate what portion of the pipeline will materialize in a transaction, Relevium says its leadership team will remain focused on an aggressive acquisition model over the next two years.

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