Wishpond Completes the Acquisition of PersistIQ Inc., a Profitable Silicon Valley Based Technology Company
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Cutting-edge SaaS company expands Wishpond’s technology and capabilities into the complementary sales automation market.
VANCOUVER, BC, March 1, 2021 /CNW/ – Wishpond Technologies Ltd. (TSXV: WISH) (“Wishpond” or the “Company”), a provider of marketing-focused online business solutions, is pleased to announce that the Company has completed its previously announced acquisition of all of the equity interests in PersistIQ, Inc. (“PersistIQ”) through the Company’s wholly owned subsidiary (the “Acquisition”). Based out of San Mateo, California, PersistIQ is a high performing Software-as-a-Service (SaaS) company which provides sales engagement technologies to empower salespeople and entrepreneurs.
“We are very excited to add PersistIQ’s sales automation products and expertise to Wishpond,” said Ali Tajskandar, Chairman and CEO of Wishpond. “This is our second acquisition and is in line with our strategy to grow inorganically through tuck-in acquisitions of innovative marketing and sales technology companies. PersistIQ broadens our portfolio of products and services for small to medium sized businesses and offers tremendous cross-selling opportunities into our existing customer base.”
Founded in 2014, PersistIQ is a leading sales automation software developer with a platform that successfully integrates its users’ sales communication, existing workflow, CRM and marketing automation systems. PersistIQ’s commitment to developing a robust sales automation and communication platform with highly advanced functionality has resulted in a software that shortens the sales cycle, enables users to personalize each and every campaign and has increased the effectiveness of sales teams through its ability to allow for personalized campaigns to be launched in minutes, leading to more conversations started from cold leads. PersistIQ was recently named a “High Performer in the Sales Engagement” category on www.G2.com, one of the world’s premier platforms for business software reviews.
PersistIQ has a base of approximately 780 clients and has generated recurring revenue of US$1.1 million with EBITDA margins of approximately 20% in 2020. Through the Acquisition, it is expected that PersistIQ will expand Wishpond’s capabilities into the sales automation and communication space. As a result, significant cross-selling opportunities and new customer segments will be made available to Wishpond. PersistIQ's client base is primarily comprised of small-medium sized businesses, which is consistent with Wishpond's target market.
Terms of the Acquisition
In consideration for the Acquisition of PersistIQ, Wishpond expects the aggregate purchase price to be approximately US$3,000,000 consisting of (the “Purchase Price”): (i) US$1,000,000 subject to a Purchase Price Adjustment paid in cash; (ii) 663,388 common shares of Wishpond (each a “Wishpond Share”) at a price per share of $1.8915 for aggregate share consideration value of US$1,000,000; and (iii) a one-year earn-out which the Company anticipates to be approximately US$1,000,000 (the “Earn-Out”), based on the future revenue of the business. The Earn-Out payments will commence on June 1, 2021 and are payable on a quarterly basis in cash or by the issuance of Wishpond Shares, at the sole discretion of Wishpond, at the 5-day VWAP of the Wishpond Shares. The Earn-Out payments will not exceed a maximum aggregate value of US$2,000,000. Any Wishpond 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 US securities laws.
WISHPOND TECHNOLOGIES LTD.
Per: “Ali Tajskandar”
Chairman and Chief Executive Officer
For further information: Pardeep S. Sangha, Investor Relations, Wishpond Technologies Ltd.,
About Wishpond Technologies Corp.
Based out of Vancouver, British Columbia, Wishpond is a provider of marketing focused online business solutions. Wishpond's vision is to become the leading provider of digital marketing solutions that empower entrepreneurs to achieve success online. The Company offers an "all-in-one" marketing suite that provides companies with marketing, promotion, lead generation and sales conversion capabilities from one integrated platform. Wishpond replaces entire marketing functions in an easy-to-use product, for a fraction of the cost. Wishpond serves over 2,000 customers who are primarily small-to-medium size businesses (SMBs) in a wide variety of industries. The Company has developed cutting edge marketing technology solutions and continues to add new features and applications with great velocity. The Company employs a Software-as-a-Service (SaaS) business model where substantially all the Company's revenue is subscription-based recurring revenue which provides excellent revenue predictability and cash flow visibility. Wishpond is listed on the TSX Venture Exchange under the ticker "WISH". For further information, visit: www.wishpond.com.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction. Any securities referred to herein have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to a U.S. Person absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.
Notice Regarding Forward Looking Statements
Certain statements in this news release related to the Company are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as "may", "should", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward looking statements in this news release include statements regarding the closing of the Transaction; post-closing objectives of Wishpond for the PersistIQ brand and business; the expectation of additional revenues to Wishpond post-closing; the expectation that PersistIQ revenues may continue to grow as expected; that the Acquisition may position Wishpond for future growth through additional strategic acquisitions; and that the vendors will assist Wishpond with the transition of operations post-closing. There are numerous risks and uncertainties that could cause actual results and Wishpond's plans and objectives to differ materially from those expressed in the forward-looking information, including: (i) COVID-19 risks; (ii) difficulties and delays associated with integrating and growing the PersistIQ business post-closing; (iii) risks inherent in the online marketing software and agency industry in general; (iv) other factors beyond the control of the Company; and (v) risks outlined in Wishpond's publicly filed documents available on SEDAR. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.