NowVertical acquires more capital to fuel acquisition strategy.
Toronto-based data software and services company NowVertical has secured a $7 million CAD credit facility from TD Bank as it closes its two previously announced multimillion-dollar acquisitions of Acrotrend Solutions and Smartlytics.
NowVertical announced last week that its acquisitions of United Kingdom data analytics solution providers Acrotrend and Smartlytics have been completed as the Canadian company continues its growth plans focused on acquisitions.
NowVertical claims over 175 customers, including the likes of Nike, WHSmith, and Arrow Global.
For its purchase of Acrotrend, NowVertical is paying $4.1 million USD in cash, an issuance of 750,000 NowVertical shares priced at $1 USD each. The transaction also includes an earn-out consideration paid over three fiscal years, a portion of which may be payable in NowVertical shares subject to a maximum of five million shares.
NowVertical is financing its purchase of Smartlytics with $1 million USD in cash, an issuance of 600,000 NowVertical shares, as well as an earn-out consideration, which may be payable in part with up to 926,413 NowVertical shares.
Founded in 2018, NowVertical is a big data tech company that offers “vertical intelligence” solutions, which the firm describes as the combination of human expertise and big data analytics, applied with precision and timing. It claims over 175 customers, including the likes of Nike, WHSmith, and Arrow Global.
NowVertical said it grows “organically and through acquisitions.” It has completed 11 acquisitions since its inception, focused mainly on companies that also operate in the data and analytics space, such as Halifax marketing software startup Affinio ($9 million CAD) and Argentinian data science company CoreBI ($8 million USD).
NowVertical initially announced it entered agreements to acquire both Acrotrend and Smartlytics in December 2022. In that same month, NowVertical also announced its intent to acquire Group Analytics 10 and Inteligencia de Negocios and its affiliate entities (collectively, A10 Group) for $5.5 million USD. NowVertical has not publicly announced if it has closed its transaction with A10 Group.
Not exempt from the downturn in the tech sector, NowVertical’s share price has declined by nearly 25 percent over the past year, trading at $0.84 CAD at press time. In comparison, the company’s stock was hovering just above $1 in January 2022. NowVertical began trading on the TSX Venture Exchange in 2021, under the ticker symbol ‘NOW.’
In its third-quarter earnings report for 2022, NowVertical posted $8.4 million USD in revenue, representing an increase of 775 percent from $1 million in Q3 2021. It also saw its net losses increase by $1.5 million from Q3 2021, reporting $2.9 million in net losses for the third quarter of 2022.