Paltalk (NASDAQ:PALT) Inc announced that it has acquired the core assets of ManyCam from Visicom Media Inc for $2.7 million in cash, plus a potential earn-out payment of up to $600,000.
The earn-out payment is conditional upon the achievement of certain performance thresholds related to gross sales of ManyCam software over the six-month period following the closing of the acquisition.
The communications software innovator said ManyCam is a live streaming software and virtual camera that allows users to deliver professional live videos on any streaming platform, video conferencing app or distance learning tool.
“We believe that ManyCam is not only a perfect fit for our existing video chat communities, but also a great addition to other video conferencing applications like Zoom or Google Meet,” CEO Jason Katz said in a statement.
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“We believe the integration of the ManyCam software into our current application offerings has the potential to generate positive cash flow in the near term and contribute to positive EBITDA over the long term,” Katz added.
Paltalk (NASDAQ:PALT) also noted that it has entered into transition services agreements with certain employees or affiliates of Visicom to facilitate the transfer of the assets from Visicom to Paltalk (NASDAQ:PALT).
Paltalk is a communications software innovator that powers multimedia social applications. Its portfolio includes Paltalk and Camfrog, which together host one of the world's largest collections of video-based communities.
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