Wishpond Technologies Ltd. (TSX-V:WISH, OTCQX:WPNDF) told investors it has completed its previously announced acquisition of certain assets and specific liabilities of AtlasMind Inc’s Winback.chat product.
The Vancouver, British Columbia-based digital solutions company said it paid a total consideration of US$700,000 for the acquisition, entirely from cash on hand.
It noted that New York-based Winback provides it with user-friendly and automated SMS marketing solutions, including a cart abandonment tool that can also be sold to its existing e-commerce clients, thereby creating a stickier offering.
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"Winback is a great strategic fit with our current product offerings and its cross-sell opportunities are expected to increase our customer lifetime value,” Wishpond chairman and CEO Ali Tajskandar said in a statement.
“Winback is our fourth acquisition since going public just over a year ago; establishing Wishpond's track record as a disciplined acquirer and capital allocator,” he added.
Wishpond said the Winback product is extremely intuitive and user-friendly making it a great fit with Wishpond's target customer base. It provides an automated SMS marketing platform for small-medium sized businesses, including a cart abandonment app for Shopify (TSX:SH., NYSE:SHOP) merchants, which installs with one click. The technology is triggered when a shopper browses but doesn't add anything to their cart. In the past, Wishpond said Winback's customers have witnessed a return on their investment of up to 35 times.
Winback has a diversified customer base of over 350 monthly paying customers, generating an annual revenue run rate exceeding $450,000.
The majority of its customers are US-based, which Wishpond said aligned well with its targeted growth plans. It also noted that Winback is a healthy company with growing recurring revenue, strong underlying earnings (EBITDA) margins over 20%, and positive cash flow.
Wishpond said Winback will continue to maintain its brand and will maintain existing client relationships, while Wishpond will provide operational support. It said the ability to sell and add Winback's products to its existing packages is expected to create a higher value product to its own customers, resulting in greater monthly recurring revenue and increased customer retention and long-term value.
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.
Contact the author at stephen.gunnion@proactiveinvestors.com