Wishpond Technologies Ltd has announced the acquisition of Viral Loops Limited, a London, England-based referral marketing software platform that helps companies acquire new customers and increase sales through the power of word-of-mouth and referral marketing.
The company said Viral Loops has strong sales growth from more than 700 customers, is EBITDA positive and is expected to be immediately accretive to Wishpond.
“We are very pleased to announce our first acquisition of 2022 and the fifth acquisition since Wishpond went public in December 2020,” Wishpond CEO Ali Tajskandar said in a statement.
READ: Wishpond's subsidiary Brax enters into partnership with native ad agency ROI Marketplace
“Viral Loops has built a company with tremendous brand recognition in the industry and has demonstrated consistent, strong revenue and EBITDA growth,” Tajskandar added.
Wishpond noted the total purchase price for Viral Loops is about US$2.3 million, consisting of an upfront payment of US$1.38 million from cash on hand and a one-year performance earn-out in the expected amount of US$920,000.
The earn-out, which is based on a percentage of revenue of the acquired Viral Loops business, will be paid quarterly and may be paid in cash, Wishpond common shares, or a combination of both at the company's discretion, Wishpond said.
It added that Viral Loops generated US$800,000 in revenue during 2021 with over 15% EBITDA margins.
Wishpond offers an 'all-in-one' marketing suite that provides companies with marketing, promotion, lead generation, and sales conversion capabilities on one integrated platform.
The company has developed cutting-edge marketing technology solutions and continues to add new features and applications with great velocity. It 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.
Contact Sean at sean@proactiveinvestors.com