Wishpond Technologies Ltd. (TSX-V:WISH, OTCQX:WPNDF) said it has entered into an asset purchase agreement under which a wholly-owned subsidiary will acquire certain assets and specific liabilities of Atlas Mind Inc’s Winback.chat product.
The Vancouver, British Columbia-based digital solutions company said it will pay a total consideration of US$700,000 for the acquisition, entirely from cash on hand.
New York-based Winback offers an SMS platform for small-medium sized businesses with a focus on providing cart abandonment solutions. It is currently an exclusive app to Shopify (TSX:SH., NYSE:SHOP) whose product installs with one click.
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"We're very pleased to announce our fourth acquisition this year," Wishpond chairman and CEO Ali Tajskandar said in a statement.
"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.”
Wishpond said Winback's technology is triggered when a shopper browses but doesn't add anything to their cart. The product is extremely intuitive and user-friendly making it a great fit with Wishpond's target customer base, it said.
The company noted that Winback is a healthy company with growing recurring revenue, generating strong underlying earnings (EBITDA) margins of over 20%, and positive cash flows. Its 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.
It said 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, the company added.
The acquisition is expected to close in early January 2022 and is subject to the approval of the TSX Venture Exchange, Wishpond said.
The company also advised that its board of directors has authorized, under its stock option plan, the grant of incentive stock options to certain employees and an officer to purchase an aggregate of up to 310,000 common shares in its capital at an exercise price of $1.26 per share. The options are exercisable for a 10-year term from December 10, 2021.
Wishpond offers an "all-in-one" marketing suite that provides companies with marketing, promotion, lead generation, and sales conversion capabilities from one integrated platform. The company replaces entire marketing functions in an easy-to-use product, for a fraction of the cost, serving over 3,000 customers who are primarily small-to-medium size businesses (SMBs) in a wide variety of industries.
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