Ionik's first party data acquisition capabilities expanded, financed with existing resources
Founded in 2016 by
- Financial Profile: SHIFT44 organically grew revenues at over 15% in its most recently completed fiscal year. The company generates consistent Adjusted EBITDA1 and Adjusted Free Cash Flow1 and operates at a financial scale that is a solid enhancement to Ionik's accelerating financial profile.
- First Party Data Acquisition Platform: SHIFT44's targeted performance marketing platform materially accelerates the growth of Ionik's first party data asset that is at the core of any performance marketing company's competitive advantage.
- Synergistic Performance Marketing Technology: SHIFT44's data acquisition and lead generation technologies and Ionik's user acquisition, traffic distribution and monetization technologies are highly synergistic with an extensive history of commercial integration. SHIFT44 and Ionik excel at user acquisition across different marketing channels. Combining these best-in-class capabilities and supporting technologies is expected to lead to reduced acquisition costs and increased traffic volumes across multiple user paths. Similarly, combining monetization solutions and technologies that leverage artificial intelligence and machine learning based optimization algorithms of both platforms is expected to drive higher revenue per user while delivering highly targeted customers and improved return on investment for advertisers. The anticipated results of these integrations are accelerated revenue growth and improvements to collective margins.
1 Please refer to "Non-IFRS Measures" section of this press release |
"SHIFT44 has built an extensive first party data acquisition and performance marketing platform that synergistically binds with Ionik's previous acquisitions," said
Added
Pursuant to the definitive transaction agreement (the "Transaction Agreement") entered into on
The Class
The Debenture is non-interest bearing, repayable on
The Seller and each of
The Bank of Montreal, as the sole arranger, sole bookrunner and administrative agent, and National Bank of Canada,
Given capital market conditions, Ionik has chosen to forgo raising capital in the public markets and instead has sourced the Cash Consideration from its existing Syndicate Credit Facility, issued Class
The Transaction has been conditionally approved by the
The Company prepares its financial statements in accordance with International Financial Reporting Standards ("IFRS"). However, the Company considers certain non-IFRS financial measures as useful additional information to assess its financial performance. These measures, which it believes are widely used by investors, securities analysts and other interested parties to evaluate its performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. Non-IFRS measures include "Adjusted EBITDA" and "Adjusted Free Cash Flow".
Consolidated adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is a non-IFRS measure of financial performance. The presentation of this non-IFRS financial measure is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with IFRS and may be different from non-IFRS financial measures used by other companies. Company management defines Adjusted EBITDA as IFRS Net income (loss) adding back finance costs, income taxes, depreciation amortization, gain/loss on disposal of assets and extinguishment of loans, fair value gain/loss on financial liabilities and contingent consideration, and excludes discontinued operations and the effects of significant items of income and expenditure which may have an impact on the quality of earnings, such as impairments where the impairment is the result of an isolated, non-recurring event. It also excludes the effects of equity-settled share-based payments, foreign exchange gains/losses, changes in deferred revenues, changes in deferred cost of sales, and other extraordinary one-time expenses.
Company management defines "Adjusted Free Cash Flow" as Adjusted EBITDA less capital expenditures, such as acquisition of property and equipment and additions to intangibles, and income taxes paid during the applicable period.
Management believes Adjusted EBITDA and Adjusted Free Cash Flow are a useful financial metrics to assess operating performance on a cash basis before the impact of non-cash and extraordinary one-time items.
SHIFT44 is a data-driven marketing services company, which helps companies acquire customers by utilizing its proprietary digital technology and expansive consumer audience. SHIFT44 provides meaningful content that captures audiences at scale and connects advertisers with consumers on a performance-based marketing model. SHIFT44 works with large consumer brands, advertising agencies, and growth minded marketers across a variety of different industries and verticals.
Ionik, a Tier 1 Issuer on the
Additional information about the Company is available at www.sedar.com .
Neither the
Cautionary Statement Regarding Forward-Looking Information
Certain information in this news release constitutes forward-looking statements and forward-looking information under applicable Canadian securities legislation (collectively, "forward-looking information"). Forward-looking information includes, but is not limited to, statements with respect to the business, financials and operations of the Company and is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events. Forward looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements and future events to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the public documents of the Company available at www.sedar.com. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Investors are cautioned that undue reliance should not be placed on any such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
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