Innovia Consulting has announced the acquisition of 365Vertical and its cannabis-focused division, 365 Cannabis, to strengthen its industry-specific Microsoft Dynamics 365 Business Central offering.
Headquartered in Wisconsin, Innovia is known for its long-standing specialization in Microsoft ERP systems. By integrating 365Vertical and 365 Cannabis, the company broadens its presence in regulated and compliance-heavy industries, including cannabis, agriculture, and manufacturing.
For investors watching the cannabis ecosystem, this transaction highlights an often-overlooked segment of the market: enterprise software and operational infrastructure. While headlines typically focus on MSOs and cultivators, backend technology providers continue to scale quietly alongside industry growth.
What 365 Cannabis Brings to the Table
365 Cannabis has built its business around seed-to-sale ERP software designed specifically for cannabis operators. The platform combines traditional supply chain management functions with cannabis-specific modules, allowing cultivators, processors, distributors, and retailers to manage operations within a single system.
Key elements of its offering include:
- End-to-end seed-to-sale tracking
- Compliance-ready reporting integrations
- Modular system architecture that scales with business growth
- Dedicated cannabis-industry support teams
The company positions its ERP as purpose-built for cannabis, rather than a generic ERP retrofitted to meet regulatory requirements. That specialization has become increasingly valuable as state-level compliance frameworks have grown more complex and operators have expanded across multiple jurisdictions.
Strategic Fit Within the Microsoft Ecosystem
Innovia is a Microsoft Dynamics 365 Business Central consultancy with more than three decades of experience implementing ERP systems across North America. The firm has earned multiple industry recognitions in the Microsoft Partner Network and maintains a broad client base across various sectors.
The acquisition strengthens Innovia’s vertical market strategy by adding teams with expertise in highly regulated environments. It also expands the company’s geographic footprint and deepens its bench of professionals focused on complex operational workflows.
For cannabis investors, this signals two broader themes:
- Enterprise-grade infrastructure continues to mature. Cannabis businesses increasingly rely on institutional-level technology to manage compliance, inventory, finance, and reporting.
- Service providers are consolidating. As the industry stabilizes, technology vendors are positioning themselves for long-term scale rather than short-term expansion.
Why This Matters for Cannabis Investors
Although this deal does not directly impact plant-touching operators, it reflects continued institutionalization within the cannabis supply chain. Software platforms that integrate cultivation, manufacturing, and retail operations are becoming core infrastructure, particularly as companies pursue multi-state operations.
ERP systems tailored to cannabis can:
- Reduce compliance risk
- Improve inventory transparency
- Streamline financial reporting
- Support scalability during expansion
As capital markets remain selective, operators increasingly prioritize operational efficiency and margin discipline. Infrastructure providers that help reduce friction and compliance exposure may become more strategically important over time.
For investors evaluating cannabis-adjacent opportunities, enterprise technology providers represent a lower-volatility segment compared to plant-touching businesses, though still dependent on industry health and regulatory clarity.
Continued Investment in Vertical Solutions
Following the acquisition, the combined organization plans to continue investing in vertical-specific product development and customer support. Existing clients of all three companies are expected to transition under a unified structure.
The broader takeaway: consolidation within cannabis software and consulting reflects a shift from early-stage experimentation toward structured, scalable systems.
While capital continues to fluctuate in public cannabis markets, backend infrastructure firms are quietly positioning for long-term stability.
Rita Ferreira
Rita is a seasoned writer with over five years of experience, having worked with globally renowned platforms, including Forbes and Miister CBD. Her deep knowledge of hemp-related businesses and passion for delivering accurate and concise information distinguish her in the industry. Rita's contributions empower individuals and companies to navigate the complexities of the cannabis world, and her work remains a valuable resource for those seeking a deeper understanding of its potential.
