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Wishpond Announces Acquisition of Winback - a Provider of Automated SMS Marketing Solutions for eCommerce
Tuesday, December 14, 2021Company Profile | Follow Company
- The acquisition of WinBack provides Wishpond with an intuitive and user-friendly automated SMS marketing product and cart abandonment tool for Shopify merchants that can be sold to Wishpond's existing e-commerce clients and create a stickier offering.
- Winback is Wishpond's fourth acquisition this year and is expected to be an immediately accretive acquisition to the Company, generating recurring revenue with healthy gross margins and positive cashflows.
Vancouver, BC, December 14, 2021--(T-Net)--Wishpond Technologies Ltd. (TSXV: WISH, OTCQX: WPNDF), a provider of marketing-focused online business solutions, announced that it has entered into an asset purchase agreement ("APA") pursuant to which a wholly owned subsidiary of the Company will acquire certain assets and specific liabilities relating to the Winback.chat product of AtlasMind Inc. for total consideration of US$700,000 paid entirely from cash on hand.
Based out of New York, Winback is a SMS marketing solutions platform including a cart abandonment tool for use with Shopify.
"We're very pleased to announce our fourth acquisition this year," said Ali Tajskandar, Chairman and CEO of Wishpond. "The synergistic attributes of this tuck-in acquisition are apparent and can be leveraged immediately with Wishpond's existing customer base to drive sales and customer retention. The ability to sell and add this product to Wishpond's existing packages will create a higher value product to our customers, resulting in higher MRR (Monthly Recurring Revenue) and increased retention and long-term value."
Winback offers a SMS platform for small-medium sized businesses with a focus on providing cart abandonment solutions. Winback is currently an exclusive app to Shopify whose product installs with one click. Winback's technology is triggered when a shopper browses but doesn't add anything to their cart. Winback's customers can achieve 35x return on their investment. The product is extremely intuitive and user-friendly making it a great fit with Wishpond's target customer base.
WinBack is a healthy company with growing recurring revenue, generating strong EBITDA margins of over 20%, and positive cash flows. Winback's current revenue run-rate is over US$450,000, from a diversified customer base of over 350 monthly paying customers, most of whom are based in the United States. WinBack will continue to maintain its own brand and will maintain existing client relationships, while Wishpond will provide operational support. WinBack's offerings are expected to enhance Wishpond's current product offerings and increase customer lifetime value
Wishpond previously acquired certain other assets and specific liabilities from AtlasMind related to its Brax.io business. Please refer to the press release of the Company dated September 1, 2021 related thereto for additional information.
The Acquisition is expected to close in early January 2022 and is subject to the approval of the TSX Venture Exchange.
Grant of Stock Options
Wishpond also advises that the Company's Board of Directors has authorized, pursuant to its Stock Option Plan, the grant of incentive stock options ("Options") to certain employees and an officer to purchase an aggregate of up to 310,000 common shares in the capital of the Company at an exercise price of $1.26 per Share. The Options are exercisable for a 10-year term from December 10, 2021.
About Wishpond Technologies Ltd.
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 3,000 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", and on the OTCQX Best Market under the ticker "WPNDF". For further information, visit: www.wishpond.com.
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Cautionary Disclaimers 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. Forward-Looking Statements Statements that are not reported financial results or other historical information are forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, "forward-looking statements"). This press release includes forward-looking statements regarding the Company, its subsidiaries and the industries in which they operate, including statements about, among other things, expectations, beliefs, plans, future operations, origination of additional targets in which the Company may hold an interest and acquisition opportunities for the Company, business and acquisition strategies, opportunities, objectives, prospects, assumptions, including those related to trends and prospects, and future events and performance. Sentences and phrases containing or modified by words such as "anticipate", "plan", "continue", "estimate", "intend", "expect", "may", "will", "project", "predict", "potential", "targets", "projects", "is designed to", "strategy", "should", "believe", "contemplate" and similar expressions, and the negative of such expressions, are not historical facts and are intended to identify forward-looking statements. Readers are cautioned to not place undue reliance on forward-looking statements. [ MORE ] |
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