Here's why Vertoz share price surged 6% in trade on November 26

Vertoz's wholly-owned subsidiary, Vertoz Inc. (USA), has signed a definitive agreement to acquire 100 per cent of Webimax LLC (USA), an AI-driven Marketing Automation company

Shares of MadTech & CloudTech company Vertoz were ruling high on the bourses on Wednesday, 26 November, after the company announced an update on an acquisition agreement signed by its wholly-owned subsidiary in the USA. The company's stock price climbed 6 per cent to ₹75.86 per share during intraday trading on Wednesday on the NSE.

 

The counter continues to see high demand from investors. At 11:16 AM on Wednesday, the company's shares were trading at ₹74.86 apiece, up 4.61 per cent from the previous close of ₹71.56 per share on the NSE. At the same time, the benchmark equity index Nifty 238 traded 238 points, or 0.90 per cent higher, at 26,122.70 levels.

 

 

The company's share price is, however, still 32 per cent shy of its 52-week high of ₹111.33 per share, reached earlier this year on 21 July.  CATCH STOCK MARKET LIVE UPDATES TODAY

Vertoz announces acquisition update

The company has announced that its wholly-owned subsidiary, Vertoz Inc. (USA), has signed a definitive agreement to acquire 100 per cent of Webimax LLC (USA), an AI-driven Marketing Automation company headquartered in New Jersey, USA. Under the terms of the agreement, Vertoz will acquire the business in two tranches:

 

• 80 per cent stake upfront for $5.28 million (approx. ₹6.8 crore)
• This amount includes a contingent earn-out of up to $0.4 million (approx. ₹3.52 crore), payable only upon achievement of agreed performance conditions.
• The remaining 20 per cent over the next three years, linked to clearly defined performance milestones.
• The incumbent management of Webimax shall continue with Vertoz.

 

"The agreement is subject to customary closing conditions and is expected to be completed within 90 days. The transaction values Webimax at a total enterprise value of $6.6 million, representing an attractive EV/Sales multiple of 0.62x. Webimax generated revenues of approximately $12 million in CY24, with an adjusted Ebitda of $2.4 million and adjusted PAT of approximately $1.8 million," the company said in its regulatory filing.

 

Vertoz said the acquisition is being funded to the extent of 7 per cent of the purchase consideration through debt provided by India's premier government financial institution, established to finance and promote the country's international trade and support Indian businesses in their global expansion efforts. Twenty-five per cent of the acquisition shall be funded by Vertoz's own internal cash flow.

 

"This acquisition marks a significant step in Vertoz's strategic expansion into the performance marketing and full-funnel digital services space. By combining Vertoz's AI-driven MadTech platforms with Webimax's on-ground execution expertise, SEO capabilities, and long-standing customer relationships, Vertoz aims to create a powerful, end-to-end digital transformation stack for global advertisers, brands, and enterprises," said the company.