Wishpond Announces Acquisition Of Winback – A Provider Of Automated SMS Marketing Solutions For eCommerce

The acquisition of WinBack provides Wishpond with an intuitive and user-friendly automated SMS marketing product and cart abandonment tool for Shopify merchants that can be sold to Wishpond’s existing e-commerce clients and create a stickier offering.

Winback is Wishpond’s fourth acquisition this year and is expected to be an immediately accretive acquisition to the Company, generating recurring revenue with healthy gross margins and positive cashflows.

Wishpond Technologies Ltd. a provider of marketing-focused online business solutions, is pleased to announce that it has entered into an asset purchase agreement pursuant to which a wholly owned subsidiary of the Company will acquire certain assets and specific liabilities relating to the Winback.chat product of AtlasMind Inc.  for total consideration of US$700,000 paid entirely from cash on hand. Based out of New York, Winback is a SMS marketing solutions platform including a cart abandonment tool for use with Shopify.

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“We’re very pleased to announce our fourth acquisition this year,” said Ali Tajskandar, Chairman and CEO of Wishpond. “The synergistic attributes of this tuck-in acquisition are apparent and can be leveraged immediately with Wishpond’s existing customer base to drive sales and customer retention. The ability to sell and add this product to Wishpond’s existing packages will create a higher value product to our customers, resulting in higher MRR (Monthly Recurring Revenue) and increased retention and long-term value.”

Winback offers a SMS platform for small-medium sized businesses with a focus on providing cart abandonment solutions. Winback is currently an exclusive app to Shopify whose product installs with one click.  Winback’s technology is triggered when a shopper browses but doesn’t add anything to their cart.  Winback’s customers can achieve 35x return on their investment.  The product is extremely intuitive and user-friendly making it a great fit with Wishpond’s target customer base.

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WinBack is a healthy company with growing recurring revenue, generating strong EBITDA margins of over 20%, and positive cash flows. Winback’s current revenue run-rate is over US$450,000, from a diversified customer base of over 350 monthly paying customers, most of whom are based in the United States.  WinBack will continue to maintain its own brand and will maintain existing client relationships, while Wishpond will provide operational support.  WinBack’s offerings are expected to enhance Wishpond’s current product offerings and increase customer lifetime value

Wishpond previously acquired certain other assets and specific liabilities from AtlasMind related to its Brax.io business. Please refer to the press release of the Company dated September 1, 2021 related thereto for additional information.

The Acquisition is expected to close in early January 2022 and is subject to the approval of the TSX Venture Exchange.

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