Veritone (VERI) Announces Completion of PandoLogic Buyout
Veritone, Inc. VERI announced yesterday that it has completed the acquisition of intelligent hiring solutions provider, PandoLogic. The deal that is worth around $150 million, includes $50 million of cash payment, $35 million through Veritone stock and $65 million in cash and stock based on earnouts through 2022.
PandoLogic is a recruitment marketing and conversational AI platform. Its flagship product, pandoIQ, automates and optimizes recruitments, and enhances the efficiency of recruitment at scale. PandoLogic will be a wholly owned subsidiary of Veritone, with no expected material change in its customers and employees.
How Will Veritone Benefit?
The buyout should help Veritone accelerate its push into the human resources and talent acquisition market.
It is anticipated to be immediately accretive to Veritone’s top and bottom lines, generating more than $50 million in SaaS and related GAAP revenues, and more than $25 million of EBITDA on a pro forma 2021 basis.
Ryan Steelberg, president of Veritone, said, "The acquisition of PandoLogic builds on the foundational strength of Veritone's organic growth and expands our addressable market with a new, diversified revenue stream."
Veritone’s shares have a gained a massive 156% over the past year against 26.4% decline of the industry it belongs to.
Veritone, Inc. Price
Veritone, Inc. price | Veritone, Inc. Quote
Zacks Rank and Stocks to Consider
Veritone currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Business Services sector can also consider stocks like ManpowerGroup MAN, Equifax EFX and Genpact G, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term expected earnings per share (three to five years) growth rate for ManpowerGroup, Equifax and Genpactis pegged at 24.2%, 15.2% and 14.7%, respectively.
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