- Acquisition expected to be immediately accretive, generating
annualized SaaS revenues of over $35 million, of which over $30
million is subscription-based with attractive margins
- Acquisition of Broadbean will advance current human resource
offerings and accelerate cross-selling revenue opportunities
- Will scale Veritone’s AI-powered HR Solutions business with the
addition of over 3,000 customers and more than 100 ATS partners and
will provide deeper expansion into human resources markets with
global footprint across Europe, North America and Asia Pacific
- Transaction value of $52 million in cash, expected to close in
late Q2 or early Q3 2023
- Veritone introduces Veritone HR Solutions, combining its
existing PandoLogic products and services with Broadbean, and
executive changes within the business
Veritone, Inc. (NASDAQ: VERI) (“Veritone” or the “Company”), a
leader in enterprise AI software and services, today announced its
agreement to acquire Broadbean, a global leader of
software-as-a-service (SaaS) technology that makes talent
acquisition and engagement easier, faster and more efficient, from
CareerBuilder. Covering more than 180 countries, serving 3,000+
clients and integrated with over 100 Applicant Tracking Systems
(ATS) partners, the strategic acquisition of Broadbean will expand
Veritone’s AI-powered human resources solutions offerings and will
build upon Veritone’s acquisition of PandoLogic in 2021. Total
consideration paid will be $52 million in cash on a cash- and
debt-free basis. The acquisition is expected to be immediately
accretive to Veritone’s operations and, on a standalone basis, is
expected to generate SaaS and GAAP revenues of over $35.0 million
on an annualized basis while contributing attractive EBITDA
margins.
Veritone’s Innovative HR Solutions Enable Increased
Efficiencies within the Hiring Process
Both Broadbean and PandoLogic hold leadership positions in the
rapidly evolving talent acquisition market, which is valued at
$36.1 billion globally as of 2022, according to Staffing Industry
Analysts. By using AI recruiting tools to engage job seekers,
Veritone HR Solutions will accelerate employers’ hiring efficiency
with advanced data-driven hiring decisions and process automation.
With more than half of Broadbean’s revenue coming from outside of
North America, the combined offerings will further accelerate
Veritone’s geographic expansion and address the challenges
presented by today’s remote and hybrid hiring requirements.
The acquisition of Broadbean will add more than 5 billion data
points of global job advertising performance to Veritone’s AI
algorithms and analytics, enabling Veritone to further enhance
recruitment insights for customers and scale AI-driven enhancements
across the business.
“This transformative acquisition signifies Veritone’s focused
approach to expanding and scaling our AI-powered HR Solutions
portfolio globally,” said Ryan Steelberg, President and Chief
Executive Officer of Veritone. “The acquisition will build on the
strength of our organic growth, will expand our HR Solutions
addressable market opportunity, is expected to be immediately
accretive, and will unlock new sales growth and development
opportunities as Veritone integrates PandoLogic’s recruitment
technology into Broadbean’s global distribution software and
network. The combination of our companies will extend the reach of
leading AI technology and HR SaaS solutions globally to the world’s
largest multinational employers that require more efficient and
scalable human resource and hiring solutions.
“We believe the added financial scale and leverage, and product
expansion into over 100 ATS partners, will enable us to accelerate
further adoption and utilization of our AI via PandoLogic’s
programmatic technology,” added Steelberg. “Both companies have
been leaders in the HR and talent acquisition markets, including
Broadbean’s global footprint with over 3,000 customers. The
integration of Broadbean and PandoLogic technology is already in
place within several ATS partners, with employers leveraging both
distribution and programmatic capabilities to scale and optimize
their job placements across an extensive publisher network as part
of their ATS workflow. Together, we will create efficiencies deeper
into the recruitment funnel as well as across the broader HR
landscape. We are excited about the prospects, and welcome
Broadbean’s talented team to Veritone.”
“With our shared vision for technological HR-enabled solutions
and strong cultural alignment, we are looking forward to becoming a
part of the Veritone family,” said Alex Fourlis, President,
Broadbean, who will step into a new senior leadership role with the
combined company after the transaction closes. “We believe that
Veritone’s AI capabilities and our combined portfolio will help
unlock value in Broadbean’s performance data, client and partner
ecosystem.”
Post-closing, the combined businesses of Broadbean and
PandoLogic will be integrated and rebranded as Veritone HR
Solutions. This will enable Veritone to better service new and
existing customers with a broader suite of HR-enabled solutions and
allow for increased efficiencies and a go-to-market team that has
broader geographic presence.
In conjunction with the acquisition, Veritone is announcing
several executive changes within its HR Solutions business. Terry
Baker has stepped down as President and Chief Executive Officer of
Veritone subsidiary, PandoLogic, and accepted a new role as
independent advisor to Veritone, supporting Veritone’s HR Solutions
business. Additionally, Veritone has appointed Matthew O’Connor as
Chief Revenue Officer of Veritone HR Solutions. In this role,
O’Connor will drive the company’s sales and growth strategy, expand
channel and reseller partnerships and broaden Veritone’s reach in
key vertical markets, including staffing and franchise. He is an
accomplished sales executive with more than 20 years of experience
with numerous organizations, including Randstad, Monster and
Care.com. These leadership changes mark a new chapter for
Veritone’s HR Solutions business and long-term growth within
AI-powered talent acquisition.
UBS Investment Bank is acting as sole financial advisor to
Veritone. Cooley LLP is acting as legal counsel to Veritone. PJT
Partners and LionTree are acting as financial advisors to Career
Builder. Sidley Austin LLP is acting as legal counsel to Career
Builder.
To learn more, visit veritone.com/broadbean-acquisition
Business Update
On May 31, 2023, Veritone filed a Current Report on Form 8-K
with the Securities and Exchange Commission providing an update on
its business and previously provided financial guidance for the
second quarter of fiscal year 2023 and full fiscal year 2023.
About Veritone
Veritone (NASDAQ: VERI) is a leader in artificial intelligence
(AI) solutions. Serving organizations in both commercial and
regulated sectors, Veritone’s software, services, and industry
applications simplify data management, empowering the largest and
most recognizable brands in the world to run more efficiently,
accelerate decision making and increase profitability. Veritone’s
leading enterprise AI platform, aiWARE™, orchestrates an
ever-growing ecosystem of machine learning models to transform
audio, video and other data sources into actionable intelligence.
Through its robust partner ecosystem and professional and managed
services, Veritone develops and builds AI solutions that solve
problems of today and tomorrow.
To learn more, visit Veritone.com.
Safe Harbor Statement
This press release contains forward-looking statements,
including without limitation, statements regarding the Broadbean
acquisition, the expected benefits of the Broadbean acquisition,
the expected timing of the closing of the Broadbean acquisition and
the impact of such developments on the Veritone’s business and
results of operations. In addition, words such as “may,” “will,”
“expect,” “believe,” “anticipate,” “intend,” “plan,” “should,”
“could,” “estimate” or “continue” or the plural, negative or other
variations thereof or comparable terminology are intended to
identify forward-looking statements, and any statements that refer
to expectations, projections or other characterizations of future
events or circumstances are forward-looking statements. These
forward-looking statements speak only as of the date hereof, and
are based on management’s current assumptions, beliefs and
information. As such, Veritone’s actual results could differ
materially and adversely from those expressed in any
forward-looking statement as a result of various factors. Important
factors that could cause such differences include, among other
things, the risk that a condition to closing of the proposed
Broadbean acquisition may not be satisfied (or waived), that either
party may terminate the merger agreement or that the closing of the
Broadbean acquisition might be delayed or not occur at all;
potential adverse reactions or changes to business or employee
relationships, including those resulting from the announcement or
completion of the Broadbean acquisition; the diversion of
management time on transaction-related issues; the response of
competitors to the Broadbean acquisition; the ultimate difficulty,
timing, cost and results of integrating the operations of Veritone
and Broadbean; the effects of the business combination of Veritone
and Broadbean, including the combined company’s future financial
condition, results of operations, strategy and plans, which are
difficult or impossible to predict accurately and many of which are
beyond the control of Veritone. Certain of these judgments and
risks are discussed in more detail in the Veritone’s Annual Report
on Form 10-K, and other periodic reports filed with the Securities
and Exchange Commission. In light of the significant uncertainties
inherent in the forward-looking information included herein, the
inclusion of such information should not be regarded as a
representation by Veritone or any other person that Veritone’s
objectives or plans will be achieved. The forward-looking
statements contained herein reflect Veritone’s beliefs, estimates
and predictions as of the date hereof, and Veritone undertakes no
obligation to revise or update the forward-looking statements
contained herein to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events for any
reason, except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20230531005278/en/
Company Contact: Mike Zemetra Chief Financial Officer
Veritone, Inc. investors@veritone.com
IR Agency Contact: Stefan Norbom Prosek Partners
203-644-5475 snorbom@prosek.com
Media Contacts: Valerie Christopherson or Lora Metzner
Global Results Comms (GRC) 949-608-0276
Veritone@globalresultspr.com
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