U.S.-based programmatic recruitment marketer PandoLogic is being acquired for $150 million.
The buyer is Veritone, creator of an operating system for artificial intelligence. The Denver, Colorado based Veritone made the announcement today.
Expected to close in the third quarter, the price is three times PandoLogic’s projected 2021 revenue of $50 million. According to the announcement, the $150 million will be paid in Veritone cash and stock, with performance earnouts through fiscal 2022.
Veritone will make upfront payments of $50 million in cash and $35 million in stock. The remaining 43%, or $65 million in cash and stock, is payable based on earnouts tied to financial performance in fiscal 2021 and 2022. Under the terms of the agreement, Veritone will issue stock consideration valued up to $56.7 million, or 2.8 million shares of Veritone common stock, which are subject to certain trading and registration restrictions.
“Both companies have been leaders in their respective markets, including PandoLogic’s marquee leading multinational clients and Fortune 100 companies,” said Chad Steelberg, chairman and chief executive officer of Veritone.
“Together, we will create efficiencies across the broader corporate landscape. We are excited about the prospects, and welcome PandoLogic’s talented team to Veritone.”
Terry Baker, PandoLogic CEO, said, “With our shared vision for AI and strong cultural alignment, we are looking forward to becoming a part of the Veritone family.”
Veritone briefed analysts during an investor call this morning. The company said it will update its financial guidance on August 3 when it will present its Q2 financial results.
PandoLogic will become a wholly owned subsidiary of Veritone, operating in Israel.