Wishpond Technologies anounces the acquisition of Greek startup Viral Loops for $2.3 million
Wishpond Technologies, a provider of marketing-focused online business solutions, is pleased to announce that it has completed the acquisition of certain assets and specified liabilities constituting substantially all of the business and assets of Greek startup Viral Loops. Headquartered in London, England, Viral Loops is a referral marketing software platform that helps companies acquire new customers and increase sales through the power of word-of-mouth and referral marketing.
“We are very pleased to announce our first acquisition of 2022 and the fifth acquisition since Wishpond went public in December 2020,” said Ali Tajskandar, Chairman and CEO of Wishpond. “Viral Loops has built a company with tremendous brand recognition in the industry and has demonstrated consistent, strong revenue and EBITDA growth. Besides growing Viral Loops as a stand-alone business, we believe there are tremendous cross-sell opportunities for offering referral marketing solutions to Wishpond’s existing customer base of over 3,000 small to medium sized businesses. We are thrilled to welcome the Viral Loops team to the growing Wishpond family.”
Founded in 2016, Viral Loops helps businesses unlock their viral growth through powerful referral marketing solutions. It allows businesses to design, create and manage referral programs that reinforce customer loyalty, attract new customers and decrease customer acquisition costs. Viral Loops provides its customers with customizable templates for referral marketing campaigns where customers can refer their network in exchange for rewards. Viral Loops’ technology tracks and manages the effectiveness and results of the referral program and enables customers to manage the distribution of the rewards and discounts arising from the campaign.
Viral Loops has strong revenue growth and over 15% EBITDA margins. Revenue in 2021 was US$800,000 generated from more than 700 diversified customers, half of whom are based in the United States. Viral Loops will continue to maintain its brand, website and client relationships, while Wishpond will provide operational support and cross selling opportunities. Wishpond expects Viral Loops product and services will enhance Wishpond’s current product offerings and increase customer lifetime value.
“We are thrilled that the Viral Loops team will be joining Wishpond,” said Savvas Zortikis, CEO of Viral Loops. “Wishpond has established a model for servicing the online marketing needs of small and mid-sized enterprises. We believe that the Viral Loops technology will continue to flourish under Wishpond and that our customers will be well served under the Wishpond banner.”
In consideration for the acquisition of Viral Loops, Wishpond anticipates the total purchase price to be approximately US$2,300,000, consisting of an upfront payment of US$1,380,000 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, common shares of Wishpond, or a combination thereof, at the Company’s discretion. Any Shares that are issued will be at a deemed price per Share equal to the 10 trading day volume weighted average price of the Shares on the TSX Venture Exchange, subject to certain minimum share price requirements as per the APA and as permitted and approved by the TSXV.