Veritone, Inc. completed the acquisition of PandoLogic, Inc. for approximately $160 million.
September 13, 2021
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Veritone, Inc. (NasdaqGM:VERI) signed a definitive agreement to acquire PandoLogic, Inc. for $150 million on July 21, 2021. The consideration is on cash and debt free basis, consisting of upfront payments of $50 million in cash, $35 million in Veritone stock, $21.7 million in Veritone stock as earnout and $43.3 million in cash as earnout. The cash consideration will be paid from existing reserves of Veritone. Post completion, PandoLogic will become a wholly owned subsidiary of Veritone. The agreement provides for customary termination rights for both Veritone, Inc. and Pandologic, including, among other bases for termination, if the agreement is not consummated prior to October 21, 2021. The transaction, subject to customary domestic and Israeli closing conditions, is expected to close late in the third quarter of 2021. The acquisition is expected to be immediately accretive. Jim Schroder, Mark May, Anthony Yamson of Stifel acted as financial advisor and Herzog Fox & Neeman acted as legal advisor to PandoLogic. Reed Smith and Meitar acted as legal advisors and PricewaterhouseCoopers acted as accountant to Veritone.
Veritone, Inc. (NasdaqGM:VERI) completed the acquisition of PandoLogic, Inc. for approximately $160 million on September 14, 2021. The total purchase consideration consisted of upfront consideration of $58.7 million in cash and Veritone's 1,704,822 shares of common stock, and up to $65,000 in contingent consideration based on achieving certain earnouts tied to financial performance of PandoLogic in fiscal 2021 and 2022, which amount will be paid in a combination of cash and common stock. The acquisition is expected to be immediately accretive, with PandoLogic generating over $50 million in SaaS and related GAAP revenues and over $25 million of EBITDA on a pro forma 2021 basis.
Veritone, Inc. is a provider of artificial intelligence (AI) computing solutions and services and certain advertising and licensing services. The Companyâs proprietary AI operating system, aiWARE, uses machine learning algorithms, or AI models, together with a suite of applications, to reveal valuable insights from vast amounts of structured and unstructured data. aiWARE serves as the foundation for its AI solutions and bespoke applications and offers access to hundreds of cognitive engines through one common software infrastructure. Its aiWARE platform offers capabilities that are designed to mimic human cognitive functions such as perception, prediction and problem solving, enabling users to transform unstructured data into structured data, and analyze and optimize data to drive business processes and insights. The Company also offers cloud-native digital content management solutions and content licensing services, primarily to customers in the media and entertainment market.