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Wishpond Completes Acquisition of Brax.io and Appoints Kevin Ho as General Manager
Friday, September 3, 2021Company Profile | Follow Company
Vancouver, BC, September 3, 2021--(T-Net)--Wishpond Technologies Ltd. (TSXV: WISH, OTCQX: WPNDF), a provider of marketing-focused online business solutions, announced today that it has completed its previously announced acquisition of certain assets and specific liabilities from AtlasMind Inc. (d/b/a) Brax.io ("Brax").
Based out of New York, Brax is a rapidly growing and profitable technology company that offers a robust advertising platform for the management of a company's digital ads across multiple sources. Brax is a Software-as-a-Service (SaaS) business that is expected to be immediately accretive to Wishpond, having generated revenue of approximately US$1.5 million over the past 12 months, with healthy gross margins of 80% and EBITDA margins exceeding 15%.
Brax will be led by Wishpond's former Vice President of Marketing, Kevin Ho, who joined Wishpond in 2015 and has since held various roles in sales, marketing and customer success. As Wishpond's Vice President of Marketing, Kevin was previously responsible for all aspects of the Company's growth including lead generation, strategic partnerships and public relations. Brax will operationally function as a separate business unit while maximizing synergies between Wishpond and Brax, including capitalizing on upsell and cross-sell opportunities.
Ali Tajskandar, Chairman and CEO of Wishpond commented, "We are pleased to welcome the Brax team of advertising experts to the Wishpond family. Brax broadens the portfolio of products and services we can offer to small and medium sized businesses and offers tremendous cross-selling opportunities for ad management solutions into our existing customer base. In addition, I am pleased to congratulate Kevin on his promotion to lead this newly acquired business. I am confident that Kevin's past experience and management skills in sales and marketing make him an ideal leader for the Brax business unit."
About Brax:
Brax offers an advertising platform for the bulk management, unified reporting, and rule-based goal optimization of digital ads across multiple sources. Brax streamlines content syndication across numerous platforms such as Yahoo Gemini, Outbrain, Taboola, Revcontent and others. The powerful Brax ad management system allows users to seamlessly create and automate advertising campaigns using custom rules across networks, accounts and ad platforms. With its centralized capabilities to scale content marketing, Brax allows advertisers to focus on the creative process with instant insight into data. Brax offers both a self-serve product for agencies and experienced enterprise clients as well as a full-serve offering for SMB customers who lack the expertise to manage and run digital advertising campaigns by themselves.
Transaction Details:
Wishpond expects the aggregate purchase price for the acquisition to be approximately US$2,000,000 consisting of: (i) US$1,333,334 paid in cash on closing; and (ii) earn-out payments calculated based on the future revenue of the purchased assets and subject to certain deductions as provided in the APA (the "Earn-Out").
The Earn-Out payments have a non-binding targeted payout of US$666,666 and will commence three months after the closing of the acquisition, will be payable on a quarterly basis, ending on the twelve-month anniversary of the closing of the acquisition and will be payable in cash or by the issuance of common shares of Wishpond ("Shares"), at the sole discretion of Wishpond.
Any Shares issued in connection with the acquisition will be subject to a restricted period of four months and one day from the date of issuance, as well as restrictions pursuant to applicable US securities laws. The TSX Venture Exchange has conditionally approved the closing of the acquisition.
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