Vertoz Shares Rally 5% on Acquiring UK Bases AI Firm 

The shares of Vertoz Ltd rallied 5% on 26 November after the company announced its plans to Webimax, a US-based AI marketing firm for a total consideration of Rs 58.42 corre. 

Vertoz Limited has agreed to buy Webimax LLC, an AI-driven marketing automation company based in New Jersey, through its US-based subsidiary Vertoz Inc. The company will acquire 80 percent of Webimax for $5.28 million (Rs 46.82 crore), which comprises $4.88 million (Rs 43.27 crore) in cash and a $0.4 million (Rs 3.5 crore) performance-linked earn-out over three years. The remaining 20 percent will be acquired depending on Webimax’s potential EBITDA after three years.

The entire enterprise value is $6.6 million (Rs 58.42 crore), and the deal will be completed within 90 days. The money for the deal would be supplied 75% as debt from India’s primary foreign trade banking institution and 25% from Vertoz’s internal cash flows, ensuring that shareholders’ equity is not diluted.

This transaction will instantly benefit Vertoz’s financial performance. The combination will increase sales by almost 9.5 million USD (Rs 87 crore) and annualized profit by approximately 17 crore. The company also anticipates 2-3.5 million USD (Rs 17-29 crore) in synergies over the next 18-30 months due to improved efficiencies, AI-led delivery, and excellent cross-selling prospects.

The funding from a large government-backed financial institution demonstrates Vertoz’s strong balance sheet and governance. Furthermore, the purchase will enhance Return on Equity (RoE), as the company chose debt and internal cash over fresh equity.

Webimax LLC is a US technology and performance solutions firm based in New Jersey that was created in 2008. Its FY24 revenue was 12 million USD (Rs 107 crore), with EBITDA of 2.4 million USD (Rs 21 crore) and PAT of 1.8 million USD (Rs 16 crore). The company provides a range of AI-powered services, including search intelligence, predictive performance systems, reputation and sentiment analysis, web engineering, automated lead qualification, and data layer strategy.

Kenneth Wisnefski, an industry veteran who previously built and sold VendorSeek.com to NASDAQ-listed QuinStreet Webimax, leads the company. He has significant technological expertise and a trusted international presence. This move expands Vertoz’s global reach and enhances its solutions in the fast developing digital advertising and AI automation industries.

Vertoz is an AI-powered tech startup that helps companies advertise online, reach their target audience, and extend their digital footprint. The company offers a variety of options, including digital marketing, online advertising, media buying, and website monetization. Additionally, it provides cloud services such as domain registration and web hosting. 

At 2:38 pm, the shares of Vertoz were trading 4.72% higher at Rs 74.94 on NSE.

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