Weyland Tech to acquire Push Holdings operations in stock transaction
Weyland Tech has agreed to acquire the assets and operations of Push Holdings, a subsidiary of ConversionPoint Technologies, in a stock transaction. Weyland anticipates the additional revenue stream, synergistic product offerings and entry into the U.S. market provided by the acquisition will drive more than 100% top-line growth in 2020. Weyland recently reported trailing 12-month subscription-based revenues of more than $32 million and turned adjusted EBITDA positive. Founded in 2009, Push Holdings is the owner of the eCommerce technology company, Push Interactive, which has 20 full-time employees headquartered in Minneapolis, Minn. Push's direct-to-consumer eCommerce platform provide an end-to-end solution for SMBs and major brands to dramatically increase online revenue and lower their cost of customer acquisition. The integration of the Weyland and Push platforms is expected to greatly enhance the value proposition for the combined existing and prospective customers. It will create significant cross-selling opportunities, including using CreateApp and AtozPay to support U.S.-based projects and campaigns for existing Push enterprise customers and campaigns. Weyland plans to introduce CreateApp to the U.S. market with a pilot launch planned for the first quarter of 2020. The company sees the North American market supporting a higher price point for subscription fees as compared to its current market in Southeast Asia. A comparative revenue model of a U.S. peer is reportedly supporting 96,000 users at $300 each per month. This compares to CreateApp's present subscription model for Southeast Asia of only $12-$80 per month, depending on modules implemented. Weyland also expects the acquisition to support its planned Nasdaq up list, while improving liquidity and valuation. It expects Push to be accretive to earnings in the first full quarter as part of Weyland. The acquisition includes approximately $2 million in cash on Push's balance sheet to support the transition and integration. The acquisition is subject to execution of a long-form purchase agreement that will contain certain closing conditions, with this expected to be completed prior to yearend.