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Banzai International, Inc. (NASDAQ:BNZI), a technology company with a market capitalization of $13.31 million, has completed its acquisition of Vidello Limited, a private company based in England and Wales.
The transaction, which closed today, was initially announced on December 19, 2024, and involved Banzai International acquiring all outstanding shares of Vidello, making it a wholly-owned subsidiary. According to InvestingPro data, Banzai reported annual revenue of $4.31 million with an EBITDA of -$12.74 million in the last twelve months.
The deal 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. Notably, the cash portion will be subject to indemnification expenses and other holdback provisions as outlined in the acquisition agreement.
In conjunction with the acquisition, Banzai issued a convertible promissory note to YA II PN, LTD. on January 30, 2025, with a principal amount of $3,500,000. The note, which matures on July 31, 2025, bears an initial 0% interest rate for the first 90 days, escalating to 6% thereafter. The investor may convert the note into Class A common stock at a conversion price of $2.00 per share.
This acquisition aligns with Banzai’s strategy to expand its services in the prepackaged software industry. The company has stated that this move is expected to increase its stockholders’ equity beyond the $2.5 million minimum required by Nasdaq, although it awaits formal compliance confirmation from the Nasdaq Panel.
The Vidello shareholders have entered into a lock-up agreement, restricting the sale of their newly acquired Banzai stock for 180 days post-closing. This is a standard practice meant to stabilize the stock post-acquisition.
As part of the corporate governance changes following the acquisition, the directors and officers of Vidello tendered their resignations, effective upon closing, with Mr. Davy appointed as the sole member of the board of directors of Vidello.
The information in this article is based on a press release statement and SEC filings, and it reflects the latest strategic moves by Banzai International in the tech sector. InvestingPro subscribers have access to 12 additional key insights about Banzai, including detailed analysis of its financial health and growth prospects.
Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its fair value, with additional metrics and expert analysis available to subscribers.
In other recent news, Banzai International has announced several significant developments. The company intends to acquire Act-On Software (ETR:SOWGn) for $53.2 million, a move expected to enhance Banzai’s product suite with Act-On’s AI-powered marketing automation capabilities.
Additionally, Banzai plans to acquire Vidello, a company specializing in video creation and marketing tools, for up to $7 million and OpenReel, a digital video creation platform, for $19.6 million. These acquisitions are projected to increase Banzai’s revenue significantly in the coming years.
Banzai has also appointed Nancy Norton as its new Chief Legal Officer, a move aimed at enhancing the company’s strategic and legal operations. Ascendiant Capital has initiated coverage on Banzai with a Buy rating. Additionally, 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 also outlined a plan to boost its net income by $13.5 million annually by 2025 through operational consolidation and workforce adjustments.
The company has restructured its long-term debt and written off $5.6 million in liabilities. Banzai reported a significant increase in its customer base, adding 147 new customers, bringing the total to 1,434 for the year.
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