Banzai to acquire Act-On Software for $53.2 million

SEATTLE - Banzai International, Inc. (NASDAQ: BNZI), a prominent provider of marketing and sales solutions trading at $1.65 per share with a market capitalization of $10.21 million, has announced its intention to purchase Act-On Software (ETR:SOWGn) Inc., a company known for its enterprise marketing automation platform. According to InvestingPro data, Banzai's stock has shown significant volatility, recording a 26% gain over the past week despite a challenging year. This acquisition, valued at $53.2 million, is expected to bolster Banzai's product suite with Act-On's AI-powered marketing automation capabilities. The deal comes as Banzai faces financial challenges, with InvestingPro analysis indicating an EBITDA of -$12.74 million and a weak overall financial health score. Get access to over 10 additional InvestingPro Tips and comprehensive financial metrics to better understand Banzai's position.

Act-On's technology is designed to enhance team efficiency and customer engagement across various communication channels. Its platform is utilized by notable enterprises such as Hitachi (OTC:HTHIY) and BestBuy to optimize lead generation and sales pipelines.

Joe Davy, CEO of Banzai, emphasized the alignment of Act-On's offerings with Banzai's vision of AI-driven marketing tools that simplify and amplify marketing efforts. Kate Johnson, CEO of Act-On, expressed enthusiasm about joining Banzai's product family and contributing to the evolution of marketing software.

Financially, the acquisition is projected to increase Banzai's revenue by $27 million for the year ending December 31, 2025, a significant boost considering the company's current annual revenue of $4.31 million. The transaction includes a mix of Banzai Class A Common Stock, Pre-Funded Warrants, and cash. InvestingPro analysis shows that Banzai's current ratio of 0.17 indicates potential liquidity challenges that investors should monitor. The anticipated close date for the deal is in February 2025, pending customary closing conditions.

The merger is detailed in Banzai's Form 8-K filed with the Securities and Exchange Commission, which outlines the terms and expected financial impact of the acquisition.

Banzai's strategic move to integrate Act-On's capabilities aims to create a comprehensive suite of marketing tools that leverage artificial intelligence to enhance marketing strategies and customer relationships. The company's goal is to provide innovative solutions that drive growth and customer lifetime value.

This news is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. It should be noted that these projections are not guarantees of future performance and actual results may differ materially.

In other recent news, Banzai International has announced several key developments. The company has entered into definitive agreements to acquire Vidello and OpenReel, companies specializing in video creation and marketing tools, for an aggregate consideration of up to $7 million and $19.6 million, respectively. The acquisitions are expected to increase Banzai's revenue by $6.5 million and EBITDA by $2.3 million.

Banzai has also appointed Nancy Norton as its new Chief Legal Officer, enhancing the company's strategic and legal operations. Ascendiant Capital has initiated coverage on Banzai with a Buy rating. In a significant shift in its treasury strategy, Banzai has allocated up to 10% of its corporate treasury assets to Bitcoin.

The company has partnered with Shareholder Intelligence Services, LLC (ShareIntel) to analyze the trading history of its common stock. Banzai has outlined a plan to boost its net income by $13.5 million annually by 2025 through operational consolidation and workforce adjustments, and has restructured its long-term debt and written off $5.6 million in liabilities. The company reported a significant increase in its customer base, adding 147 new customers, bringing the total to 1,434 for the year. These are recent developments in Banzai's financial and operational performance.

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