TORONTO, May 02, 2022 (GLOBE NEWSWIRE) — NowVertical Group Inc. (TSX-V: NOW) (“NOW” or the “Company”), a big data, analytics and vertical intelligence (“VI”) software and services company, today provided an update on the execution of its ongoing integration plan following its 2022 acquisitions of CoreBI S.A. and CoreBI S.A.S. (“CoreBI”), Exonar Ltd. (“Exonar”) and Allegient Defense, Inc. (“Allegient”).
“As part of the integration planning process, we have completed a comprehensive evaluation of the opportunities for continuing to grow our Service and Software offerings. We are ahead of schedule with the rollout of the NOW platform and integration, and our strategy is working. We are excited by the opportunities we see in the companies we have acquired during our first 18 months,” said Daren Trousdell, Chief Executive Officer of NOW. “As we continue to add new companies to the NOW platform, we are committed to doing so in an accretive manner that will add value to our shareholders.”
Expanding Integration and Operational Synergies
In addition to directly benefitting from its new acquisitions’ stand-alone growth, NOW will continue to create additional value from its integration strategy through:
- the cross-sale of NOW Origin and NOW Affinio’s products to our established portfolio of over 100 customers globally;
- conducting coordinated go-to-market strategies across business units; and
- leveraging in-house software to drive material increases in NOW Solutions’ margins.
NOW anticipates the revenues from these levers will create value for shareholders, drive healthy high double-digit revenue growth and pave the way for positive Adjusted EBITDA in the near term.
NOW Solutions Update: Expanding Customer Profile and Geographic Reach
Over the past 100 days, NOW significantly expanded its government vertical with the acquisition of Allegient, which recently exercised year one options with the Office of Naval Research for $1.7M, the Department of Energy for $1.03M, and the Department of State for $278K. Allegient currently has a contracted backlog of approximately $70M through 2025.
In addition, CoreBI maintained a 100% customer renewal rate in the first quarter and added four net-new customers to its mix, including Appa!, Vista Energy, Prosegur, and Kin & Carta. The new customer logos mark an extension of CoreBI’s service offering and global access, with the expansion of client operations into Germany and a new contract paving entry into the security services market.
NOW Origin Update: Completing Integrations, Adding Customers and Renewals
With its recent integration of UK-based Exonar, NOW Origin is quickly building a significant presence in high-growth verticals, including government, banking, pharmaceuticals, and logistics. Origin’s recent wins include:
- HIPAA violation management contract with a US Government agency with contract expansion opportunities.
- 3-year extension to provide structured and unstructured data discovery and data management with a global bank.
- 3rd successive one-year renewal contract for $650K with a prominent South African banking group.
- Contract extension to deliver governance risk and compliance management for a major global pharmaceutical company.
- 3-year extension to provide governance risk and compliance management for Campden BRI Food & Drink Science & Technology.
- 4th one-year renewal for a data security and GDPR compliance services contract with a not-for-profit protection organization for doctors, dentists and healthcare professionals.
NOW Affinio Update: Extending Contract with Major Social Media Platform
NOW Affinio is currently piloting its market basket analysis product on Snowflake. Embedding clustering and Affinio visuals will enable audience clustering on 1st party data for Snowflake customers.
In addition to the pilot, Affinio also signed a 12-month, six-figure contract extension with a major social media platform for their 3rd party social product. It has also secured significant renewals with marquee customers, including Wunderman Thompson, Danone SA, Universal Music Group, and Edelman PR.
Engagement of Market-Maker Services
NOW also entered into a market-making agreement with Independent Trading Group (“ITG”), under which ITG has agreed to provide market-making services to the Company in accordance with the policies of the TSX Venture Exchange (the “TSXV”) and applicable laws.
ITG will trade the company’s securities on the TSXV to maintain an orderly market. None of ITG nor its affiliates or associates has any interest directly or indirectly in the Company or its securities or any right or intent to acquire such an interest. In consideration of the services provided by ITG, the Company will pay ITG a monthly cash fee of $5,000 for a minimum term of one month, which will automatically extend for successive one-month terms unless terminated by either party on thirty days prior notice. The services provided by ITG commenced on April 20, 2022. ITG will not receive shares or other securities as compensation. ITG will provide the capital used for market making.
About NowVertical Group Inc.
NOW is a big data, analytics and VI software and services company growing organically and through acquisition. NOW’s VI solutions are organized by industry vertical and are built upon a foundational set of data technologies that fuse, secure, and mobilize data in a transformative and compliant way. The NOW product suite enables the creation of high-value VI solutions that are predictive in nature and drive automation specific to each high-value industry vertical. For more information about the Company, visit www.nowvertical.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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For further information, please contact:
Daren Trousdell, Chief Executive Officer
t: (212) 302-0868
Glen Nelson, Investor Relations
t: (403) 763-9797
This news release may contain forward‐looking statements (within the meaning of applicable securities laws) which reflect the Company’s current expectations regarding future events. Forward-looking statements are identified by words such as “believe”, “anticipate”, “project”, “expect”, “intend”, “plan”, “will”, “may”, “estimate” and other similar expressions. These statements are based on the Company’s expectations, estimates, forecasts and projections and include, without limitation, statements regarding the future success of the Company’s business.
The forward-looking statements in this news release are based on certain assumptions. The forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Several factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to update or revise any forward-looking statement publicly, whether as a result of new information, future events or otherwise.