Vertoz Share Price Rise 4.49% After Announcing Webimax Acquisition Deal

Mumbai, November 26: Vertoz share price is witnessing a heavy rally today, after it announced a deal to acquire Webimax. As of 3:00 PM, Vertoz shares were up by 4.49%, or 3.21 points and were trading at ₹74.77. Until now, the shares have traded within a range of ₹75.85 and ₹71.56. The traded volume for the Vertoz stock stood at 3.53 lakh shares, with the company’s market cap at ₹610 crore. The shares have their 52-week high at ₹172.40 and their 52-week low at ₹63.20.

Vertoz Limited (NSE: VERTOZ) is a technology company that operates an AI-powered platform specialising in MadTech (Marketing and Advertising Technology) and CloudTech (Cloud Infrastructure) solutions globally. The company provides programmatic advertising, digital marketing, and monetisation services, aiming to replace traditional methods of media buying and selling. The company was established in 2012 and is headquartered in Mumbai, Maharashtra.

Shares Rise After Company Announces Webimax Acquisition Deal

The rise in the share price comes after the company announced that it has signed a definitive agreement to acquire US-based Webimax LLC. Vertoz announced that its wholly owned US subsidiary, Vertoz Inc, will acquire 100% of Webimax LLC. It is a New Jersey–based AI marketing automation firm. Key factors of the deal are as follows:

• Upfront Stake: 80%
• Upfront Consideration: USD 5.28 million
• Contingent Earn-out: Up to USD 0.4 million, linked to performance metrics
• Remaining Stake: 20% to be acquired over the next three years
• Total Enterprise Value: USD 6.6 million
• Webimax Revenue (CY24): USD 12 million
• Webimax Adjusted EBITDA: USD 2.4 million
• Webimax Adjusted PAT: USD 1.8 million

The company announced that it will fund the acquisition through 75% debt, which it has taken from a key Indian government financial institution. The rest of the 25% will be financed from the company’s internal cash flows.

Investor Takeaway

Vertoz’s acquisition of Webimax LLC is a positive development for the company, as it will strengthen the company’s position in the digital marketing landscape globally. It will also help the company increase its market presence in the US market. The acquisition is likely to contribute to the company’s revenue and potential profits. The acquisition announcement was taken positively by investors, leading to a share price rise.

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