Breaking #Fintech News:
Weyland Tech (OTCQX: $WEYL) Signs Definitive Agreement to Acquire Push
Interactive's U.S. #eCommerce Platform for $25 Million
NEW
YORK - December 18, 2019 (Investorideas.com Newswire) Weyland Tech, Inc. (OTCQX:
WEYL),
a leading global Platform-as-a-Service (PaaS) provider of mCommerce and fintech
business enablement solutions, has signed a definitive agreement to acquire the
assets and operations of privately-held Push Holdings, a subsidiary of
ConversionPoint Technologies (CPT), for $25 million in an all-stock
transaction.
This
definitive agreement follows the earlier announcement of Weyland's
plans to acquire Push in order to support the launch of its CreateApp mCommerce
and mobile fintech solutions in North America, as well as to introduce
additional eCommerce products and services globally.
Read this news in
full at https://www.investorideas.com/CO/WEYL/news/2019/12181US-eCommercePlatform.asp
Consideration
for the transaction is comprised of 35,714,285 shares of Weyland Tech common
stock priced at a premium to the current market valuation. Of the total
consideration, 28,571,428 shares are payable to CPT upon closing, with the
balance of 7,142,857 shares payable subject to the achievement of certain
performance milestones and other criteria. The acquisition includes approximately
$1.5 million in cash on Push's balance sheet to support the transition and
integration, as well as the launch of CreateApp in the U.S.
Weyland
expects to close the acquisition in early January and that it will be accretive
to earnings in the first full quarter as part of Weyland. Push's additional
revenue streams, synergistic product offerings, and support of the CreateApp
U.S. market launch are expected to help drive more than 100% top-line growth in
2020. Weyland recently reported trailing 12-month recurring revenues of more
than $32 million.
The
acquired assets and operations of Push Holdings are primarily comprised of the
eCommerce technology company, Push Interactive, with 20 full-time employees
headquartered in Minneapolis, Minn. The Push Interactive direct-to-consumer eCommerce platform
provides an end-to-end solution for SMBs and major brands to dramatically
increase online revenue while lowering the cost of customer acquisition and
order fulfillment.
"We
continue to believe Push will be a highly transformative acquisition on
multiple levels, with this driving strong revenue growth and market
expansion," said Brent Suen, CEO of Weyland Tech. "Push's eCommerce
platform is highly synergistic to our existing mCommerce technologies,
particularly with CreateApp and AtozGo. Our respective
offerings are both mobile-friendly and can provide complementary products and services,
while our technology and revenue models can be seamlessly integrated into a
single platform."
The
integration of the Weyland and Push platforms is expected to significantly
enhance the value proposition for existing and prospective customers. Initial
cross-selling opportunities include using CreateApp and AtozPay to support
U.S.-based projects and campaigns for Push's current enterprise customers.
"We
recognized tremendous synergies in technology and in our corporate missions
right from the start," commented Haig Newton, co-founder, CEO and
president of Push Holdings. "We believe that together we will be able to
better help businesses and brands around the world reach more customers,
increase their sales, and promote their products and services in an easier,
more affordable and highly efficient way."
Push
will provide Weyland a well-established beachhead in North America, allowing it
to attract new users to CreateApp and AtozPay quickly and cost-efficiently.
This includes greatly reduced customer acquisition costs Weyland could not have
achieved on its own.
Previously,
U.S. customer acquisition costs for CreateApp were estimated at $2-$3 per
dollar generated, making market entry economically unfeasible. By leveraging
Push's highly effective marketing technology and operational resources, U.S.
customer acquisition cost is expected to be as little as $0.30 on the dollar.
"What
we find so amazing about CreateApp is that it requires literally no technical
understanding or skills in app design for anyone to build a full-featured
custom app in less than two hours," noted Push Interactive's chief
technology officer, Tom Furukawa. "It's a Shopify-like solution for mobile
that enables businesses and brands to establish a mCommerce presence in an
intuitive, do-it-yourself fashion. Layering on our Push platform, CreateApp
users gain a fully end-to-end mCommerce solution supported by our team of
expert digital media marketers that can enhance their visibility, customer
traffic and ultimately conversions."
As
part of a public company, Weyland's new Push subsidiary will gain easier access
to growth capital and be better able to attract additional employee talent.
Push can also leverage the cost efficiencies and diverse capabilities of
Weyland's existing 200-person technology and software development team in
Jaipur, India, while Weyland gains technical and software development expertise
from Push.
Weyland
plans to launch CreateApp in the U.S. during the first quarter of 2020. The
North American market is expected to support a higher price point for
subscription fees as compared to the company's current market in Southeast
Asia. A comparative revenue model of a U.S. industry peer supports 96,000 users
at $300 each per month. This is several times higher than the current CreateApp
subscription model for Southeast Asia at only $12-$80 per month, depending on
optional features implemented.
"Our
initial work with Push to introduce CreateApp in the U.S. led to this strategic
acquisition, so we have already made strong progress in this regard,"
added Suen. "eCommerce is becoming increasingly mobile in the U.S.,
creating a huge new market opportunity for CreateApp and AtozPay."
Weyland's
post-acquisition revenue model anticipates that U.S. CreateApp subscription
revenues alone could exceed $5 million by end of 2020. This would be in
addition to potential new Push offerings adopted by Weyland's existing
international SMB customer base, as well as new AtozPay eWallet and mobile pay
integrations in the U.S.
Additional
details about the definitive asset purchase agreement 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 Push Interactive
The
Push platform features 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 re-engagement and remarketing toolsets that enhance
customer lifetime value (LTV). Push developed these SaaS-based solutions
in-house, with more than $10 million invested in platform development and eight
years of real-world use. For more information about Push Interactive,
visit www.pushint.com.
About Weyland Tech
Weyland
Tech 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, CreateApp 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 operated 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 consummation of the asset purchase transaction of
Push, the ability of the Company to successfully integrate Push, the continued
growth of the eCommerce 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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