Banzai completes acquisition of video tech firm Vidello

SEATTLE - Banzai International, Inc. (NASDAQ: BNZI), a prominent marketing technology company with a current market capitalization of $13.53 million and an overall "Weak" financial health score according to InvestingPro, announced today the finalization of its acquisition of Vidello, a London-based provider of video hosting and marketing solutions. The deal, which was previously disclosed, is anticipated to bolster Banzai’s revenue by $6.5 million and enhance EBITDA by $2 million for the year ending December 31, 2024, on a pro-forma basis - a significant boost considering the company’s current trailing twelve-month revenue of $4.31 million and negative EBITDA of $12.74 million. These financial figures are preliminary and unaudited, with potential adjustments to follow.

Vidello’s suite of products includes CreateStudio, an acclaimed video creation app, PhotoVibrance, a tool for animating still images, Twinkle, an audio platform offering royalty-free music, and Vidello’s own video hosting and collaboration service. The acquisition is seen as a strategic move for Banzai to expand its portfolio of AI-powered marketing tools aimed at making marketers’ tasks more efficient.

The agreement terms include a cash payment of approximately $2.7 million, with $2.5 million held back for various contingencies, and the issuance of 868,204 shares of Banzai Class A Common Stock. Further details are available in the company’s Form 8-K filings with the Securities and Exchange Commission dated December 20, 2024, and January 31, 2025.

Vidello, with a customer base exceeding 90,000, has positioned its flagship product CreateStudio as a top-rated video maker, recognized by Capterra and G2. This acquisition is intended to accelerate Banzai’s revenue growth by delivering innovative solutions to its customers, which include notable names like Cisco (NASDAQ:CSCO), New York Life, and Hewlett Packard Enterprise (NYSE:HPE).

Banzai’s pursuit to provide comprehensive marketing and sales solutions is strengthened by this move, as Vidello’s offerings are expected to complement and enhance Banzai’s existing services. The company’s vision is to offer a suite of tools that simplify and expedite marketing efforts for businesses of varying sizes. With a current ratio of 0.17, indicating potential liquidity challenges, this acquisition’s success could be crucial for the company’s future. InvestingPro subscribers have access to 10+ additional key insights about Banzai’s financial health and growth prospects, essential for understanding the full impact of this strategic move.

This news article is based on a press release statement and aims to present the facts surrounding Banzai’s acquisition of Vidello without any promotional content or speculation about future performance.

In other recent news, Banzai International has finalized its acquisition of Vidello Limited, a private company based in England and Wales. The acquisition, which involved Banzai International acquiring all outstanding shares of Vidello, was settled with a payment of $2,745,031 in cash and the issuance of 898,204 shares of Banzai’s Class A common stock to Vidello shareholders. Banzai International also issued a convertible promissory note to YA II PN, LTD. with a principal amount of $3,500,000.

In addition, Banzai International intends to acquire Act-On Software (ETR:SOWGn) for $53.2 million, which is expected to increase Banzai’s annual revenue by $27 million by the end of 2025. The company also plans to acquire OpenReel, a digital video creation platform, for $19.6 million.

Ascendiant Capital has initiated coverage on Banzai with a Buy rating. Banzai has also appointed Nancy Norton as its new Chief Legal Officer. These are some of the recent developments for Banzai International.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.