Breaking #Fintech News:
Weyland Tech (OTCQX: $WEYL) to Acquire U.S. eCommerce Platform to Support North
American CreateApp Launch and New Service Offerings for SMBs Globally
NEW
YORK - November 26, 2019 (Investorideas.com Newswire) Weyland Tech,
Inc. (OTCQX:
WEYL),
a leading global Platform-as-a-Service (PaaS) provider of m-Commerce and
fintech business enablement solutions, 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
Push technology platform includes comprehensive customer acquisition
capabilities, highly productive media and channel strategies, well-tuned
product promotion and messaging, and sales funnel development and optimization.
Post sale, Push supports fulfillment, customer relationship management, and
further monetization through reengagement and remarketing toolsets that enhance
customer life time value (LTV). The company developed these SaaS-based
solutions in-house, with more than $10 million invested in platform development
and eight years of real-world use.
"This
will be a transformative acquisition for Weyland in many respects," said
Brent Suen, CEO of Weyland Tech. "Every element of Push's eCommerce
platform is highly synergistic to our existing mCommerce technologies,
particularly CreateApp and AtozGo.
Our respective offerings are mobile-friendly and provide complementary products
and services, and our similar technology and revenue models can be seamlessly
integrated into a single platform."
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.
"Push
provides Weyland a well-established beachhead in North America, allowing us to
attract new users to CreateApp and AtozPay quickly and cost-efficiently,"
continued Suen. "This includes greatly reduced customer acquisition costs
that we couldn't have achieved on our own. Together, we will be able to better
assist businesses and brands to increase sales, reach more customers, manage
logistics, and promote their products and services in an easy, affordable and
highly efficient way."
For
CreateApp, U.S. customer acquisition costs previously appeared too high to make
entry economically feasible, estimated at $2-$3 per dollar generated. However,
by leveraging Push's well-established and highly efficient technology and
operational resources, customer acquisition cost is expected to be as little as
$0.30 on the dollar. The merger of the two platforms is also is expected to
create additional economies of scale for furthering enhancing gross margins.
According
to Haig Newton, co-founder, CEO and president of Push Holdings: "Weyland's
technology is extremely complementary to the Push Interactive platform.
CreateApp requires literally no technical understanding or skills in app design
for anyone to build a full-featured custom app in less than two hours. This
means we can offer a Shopify-like solution that enables businesses and brands
to establish a mobile presence in a DIY fashion. Then with the layered
integration of Push, users gain a fully end-to-end mCommerce solution supported
by a team of expert digital media marketers that can enhance visibility,
traffic and ultimately conversions."
As
part of a public company, Push will gain easier access to growth capital and be
better able to attract additional employee talent. Push will also be able to
leverage the cost efficiencies and diverse capabilities of Weyland's 200-person
technology and software development team in Jaipur, India, while Weyland gains
extensive technical and software development expertise from Push.
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.
"Our
initial work with Push to introduce CreateApp in the U.S. is actually what led
to this strategic acquisition, so we have already made significant progress in
this regard," added Suen. "We now have a tremendously expanded market
opportunity for CreateApp and AtozPay, especially as eCommerce becomes increasingly
mobile in the U.S. Our revenue model indicates that U.S. CreateApp subscription
revenues alone could exceed $5 million by end of 2020, with this in addition to
potential new Push offerings accessed by our existing international SMB
customer base, as well as new AtozPay eWallet and mobile pay
integrations."
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. Additional details about the transaction are provided in a Form 8-K,
available at www.sec.gov and the investor relations
section of
Weyland Tech's website at weyland-tech.com.
About Weyland Tech
Weyland
Tech, Inc. operates as a Fintech focused company and is a developer and global
provider of mobile business software applications. The company operates its
CreateApp™ platform-as-a-service (PaaS) across three continents and 10
countries, including some of the fastest-growing emerging markets in Southeast
Asia. The platform provides a mobile presence for small-and-medium sized
businesses (SMBs) that is supported locally by distributor partnerships.
Offered
in 14 languages with more than 70 integrated modules, Weyland enables SMBs to
create and deploy native mobile applications for Apple iOS and Google Android
without technical knowledge or background. The technology empowers SMBs to
increase sales, reach more customers, manage logistics, and promote their
products and services in an easy, affordable and highly efficient way.
The
company's subsidiary, Weyland Indonesia Perkasa (WIP), operates AtozPay and
AtozGo. The AtozPay mobile payments platform serves the burgeoning m-Commerce
and e-Payment markets in Indonesia, the world's fourth most populous
country. AtozGo is a fast-growing short-distance
food delivery service in Jakarta, Indonesia.
Important Cautions
Regarding Forward Looking Statements
This
release contains certain "forward-looking statements" relating to the
business of the Company. All statements, other than statements of historical
fact included herein are "forward-looking statements" including
statements regarding: the ability of the Company to successfully integrate
Push, the continued growth of the e-commerce segment and the ability of the
Company to continue its expansion into that segment; the ability of the Company
to attract customers and partners and generate revenues; the ability of the
Company to successfully execute its business plan; the business strategy,
plans, and objectives of the Company; and any other statements of
non-historical information. These forward-looking statements are often
identified by the use of forward-looking terminology such as
"believes," "expects" or similar expressions and involve
known and unknown risks and uncertainties. Although the Company believes that
the expectations reflected in these forward-looking statements are reasonable,
they do involve assumptions, risks, and uncertainties, and these expectations
may prove to be incorrect. Investors should not place undue reliance on these
forward-looking statements, which speak only as of the date of this news
release. The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a variety of
factors, including those discussed in the Company's periodic reports that are
filed with the Securities and Exchange Commission and available on its website
(www.sec.gov). All forward-looking statements attributable to the Company or
persons acting on its behalf are expressly qualified in their entirety by these
factors. Other than as required under the securities laws, the Company does not
assume any duty to update these forward-looking statements.
Company Contact
Brent
Suen, CEO
Weyland Tech Inc.
Weyland Tech Inc.
Media & Investor Contact
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