Veritone, Inc. (Nasdaq: VERI), a Denver, Colorado-based creator of an operating system for artificial intelligence, is to acquire PandoLogic, a Herzliya, Israel- and NYC-based provider of intelligent hiring solutions, for $150m.
Led by Terrance Baker, CEO, PandoLogic utilizes AI to accelerate the time and improve the efficiency in the process for employers hiring at scale for both mass market and difficult-to-source candidates. Its fully autonomous recruiting platform allows employers to source talent with predictive algorithms, machine learning and AI. Its talent acquisition software offers AI recruitment marketing and conversational AI technology to source candidates across multiple channels.
Led by Chad Steelberg, chairman and chief executive officer, Veritone is a provider of artificial intelligence (AI) technology and solutions. Its proprietary operating system, aiWARE™, powers a diverse set of AI applications and intelligent process automation solutions for both commercial and government organizations. aiWARE orchestrates an expanding ecosystem of machine learning models to transform audio, video and other data sources into actionable intelligence. The company’s AI developer tools enable its customers and partners to develop and deploy custom applications that leverage the power of AI to improve operational efficiency and surface opportunities. Veritone also has offices in California and London.
The acquisition is expected to be immediately accretive, with PandoLogic generating over $50m in SaaS and related GAAP revenues and over $25m of EBITDA on a pro forma 2021 basis. The total consideration consists of upfront payments of $50m in cash and $35m in Veritone stock. The remaining 43%, or $65m in cash and stock, is payable based on earnouts tied to financial performance in fiscal 2021 and 2022. Under the terms of the agreement, Veritone will issue stock consideration valued up to $56.7m, or 2.8 million shares of Veritone common stock, which are subject to certain trading and registration restrictions. The transaction, subject to customary domestic and Israeli closing conditions, is expected to close late in the third quarter of 2021, with the cash consideration being paid from Veritone’s existing reserves. PandoLogic will become a wholly owned subsidiary of Veritone, operating in Israel.
FinSMEs
23/07/2021