MUMBAI: Vertoz, a global MadTech and CloudTech company, through its US subsidiary, Vertoz Inc has signed a definitive agreement to acquire Webimax LLC, an AI-driven marketing automation company headquartered in New Jersey, US.
Vertoz will initially acquire 80 per cent stake with upfront payment of $5.28 million (about ₹47 crore). The payment includes a contingent earn-out of up to $0.4 mill (about ₹4 crore)payable only upon achievement of agreed performance conditions. The remaining 20 per cent stake will be acquired over the next three years, linked to clearly defined performance milestones.
The incumbent Webimax management will continue with the Vertoz team. The agreement is subject to customary closing conditions and is expected to be completed in 90 days.
The transaction values Webimax at $6.6 million, representing an EV/Sales multiple of 0.62 times. Webimax generated revenue of about $12 million in 2024, with an adjusted EBITDA of $2.4 million and adjusted PAT of about $1.8 million.
About 75 per cent of the purchase consideration will be funded through debt and the remaining through Vertoz’s own internal cash flow. Webimax runs a very profitable, cash generative business, with debtor days of just 1 month, said the company.
The deal will add about $9.5 million (₹87 crore) of revenues to Vertoz’s existing about ₹300 crore of annualised revenues. It will also add ₹17 crore of annualised net profit to Vertoz, which is about ₹30 crore on an annualised basis.
Vertoz’s Return on Equity will increase from the current level of about 16 per cent after inclusion of the Webimax asset post closure of the acquisition.
The company’s shares were down marginally at ₹74 on Thursday.
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