Red Violet, Inc. (NasdaqCM:RDVT) is looking for acquisitions. During the Red Violet's Second Quarter 2026 Earnings Conference Call, Derek Dubner, Chairman and Chief Executive Officer, said, "As we recently announced, Red Violet completed a public offering, raising approximately $109 million in net proceeds from both new and existing investors, which we intend to use for working capital, general corporate purposes in connection with potential strategic acquisitions. I want to spend a moment on what that means and why now.
Since our spin-off in 2018, we've been intentionally conservative in how we built this business. Building a cash-generative, self-sustaining business was always the goal. And while we did raise modest capital twice along the way, $7.5 million in 2019 and $21 million in 2021, those were targeted, purposeful raises that accelerated specific initiatives and were quickly absorbed into a self-funding model".
"We are also observing inorganic opportunities in the way of strategic acquisitions, and we have defined a clear framework for how we will evaluate them. We are looking for targets that meet one or more of three criteria. First, acquiring unique data assets that expand our longitudinal identity graph and drive new use cases.
Second, acquiring enabling technology that accelerates product development or brings differentiated capabilities where a build-versus-buy analysis favors acquisition. Third, expanding our vertical market presence by adding industry expertise, customer relationships and accelerating penetration into adjacent verticals where we've targeted or are beginning to establish a foothold. We have significant runway remaining in the United States, competing against much larger but far less differentiated incumbents across a TAM we have just begun to penetrate, and that is where our primary focus lies.
That said, where a target meeting one or more of these criteria also brings an established international presence, that is a meaningful added dimension we will weigh in our evaluation. What I want to be equally clear about is our discipline. We evaluate acquisitions first on strategic fit and synergies.
Does it advance the road map? Does it strengthen the platform? Does it serve a customer base we want to serve?
Valuation and accretion follow from that. We have a high bar. We've walked away from potential transactions in the past, and we will continue to do so if the fit is not right.
The capital we have raised gives us the capacity to act when the right opportunity presents itself, not the obligation to act for its own sake".
