Marketing platform Wishpond acquires New York’s Brax for $2.5M
The acquisition is meant to expand Wishpond’s technology and capabilities in digital ad management software solutions.
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Last week, Ali Tajskandar, the CEO of marketing platform Wishpond, announced that his firm had a monster quarter. They hit $3.2 million in revenue in Q2 of 2021, a jump of 73% compared to the previous year. Tajskandar gave two reasons for the growth. One, they’ve been investing in their sales teams. Two, their most recent acquisitions—of Invigo and PersistIQ, which provide medical marketing and sales automation tech, respectively—are generating positive top-line contributions.
Tajskandar also shared that US revenue grew by over 100%, despite the negative currency headwinds in the quarter. “We are beginning to witness the synergistic benefits of our acquisitions through cross-selling the company’s products and services across the different parts of the growing organization,” he said.
With success quickly emanating from its recent acquisitions, perhaps it’s no surprise that Wishpond is returning to the M&A well as a source of continued growth.
Today, the company announced the acquisition of assets from New York-based AtlasMind Inc., which does business as Brax, for approximately $2.5 million.
Brax offers an advertising platform for the management of a company’s digital ads across multiple sources. The acquisition is meant to expand Wishpond’s technology and capabilities into the adjacent market for digital ad management software solutions.
“We are very excited with the prospect of adding advertising management solutions to our industry-leading digital marketing platform,” said Tajskandar. “Brax has a proven track record with enterprise and ad agency customers which we plan to leverage into providing ad management software and services to over 3,000 Wishpond customers and millions of other small medium-sized businesses worldwide. This is our third acquisition and is in line with our strategy to grow organically and inorganically through tuck-in acquisitions of innovative and complementary technology companies.”
Brax streamlines content syndication across numerous platforms such as Yahoo Gemini, Outbrain, Taboola, Revcontent and others. Its ad management system allows users to create and automate advertising campaigns using custom rules across networks, accounts and ad platforms.
Revenue boost: Brax has a diversified customer base and generated trailing twelve month revenue of approximately $1.8 million. As a SaaS firm, its business model results in recurring revenue and gross margins of 80% with EBITDA margins exceeding 15%, according to Wishpond.
“How would you like to pay?” Wishpond expects the aggregate purchase price to be approximately $2.5 million (USD$2 million) consisting of ~$1.7 million paid in cash and a non-binding targeted payout of ~$840,000 in earn-out payments. Shares issued in connection with the acquisition will be subject to a restricted period of four months and one day from the date of issuance, as well as restrictions pursuant to applicable securities laws. The closing of the acquisition is subject to the approval of the TSX Venture Exchange.
Wishpond is listed on the TSX Venture Exchange under the ticker “WISH”, and on the OTCQX Best Market under the ticker “WPNDF”.