The Bigtincan Holdings Ltd (ASX: BTH) share price has risen today on news announced to the ASX this morning before market-open that the company has acquired the United States (US)-based company Veelo, Inc. Bigtincan shares started the day at 50 cents per share, but BTH has jumped 5.05% during trading and is sitting at 52 cents per share at the time of writing.
Here's how Bigtincan broke the news:
"Bigtincan has signed a definitive agreement to acquire the assets of Portland, Oregon, USA based Veelo, Inc. for a consideration comprising all cash payments totalling US$1.8m and the assumption of normal associated liabilities. Completion of the acquisition has occurred. Veelo is a pioneer in Sales Enablement having been one of the first to provide support for sales enablement inside Salesforce.com, Microsoft Dynamics, and Google G-Suite for enterprise customers… Veelo's award-winning sales enablement platform increases sales performance by predicatively guiding sellers on what to know, say and do."
Bigtincan hopes that the acquisition will "expand Bigtincan's presence and offering in the technology market vertical – a growing focus area for Bigtincan, reducing risk and expanding opportunities."
Veelo has a revenue base of approximately US$1 million (and growing) and Bigtincan hopes that this acquisition will expand its footprint in the Portland and Pacific Northwest region (which the company views as a "hotbed area for new technology").
On the costs and funding of the acquisition, Bigtincan stated: "Acquisition consideration reflects a recurring revenue multiple of ~2.3x before synergies… the acquisition will be fully funded from cash raised in the recent entitlement offer."
Bigtincan also singled out inside sales as a growth opportunity for the company and notes that the acquisition of Veelo adds a "strong platform for inside sales, an excellent team with specific skills and experience in inside sales, and initial customers to the Bigtincan platform providing an additional entry point into a growth area for sales enablement."
Bigtincan shares are now up a total of 92.6% in 2019 so far on today's prices.
