igtincan Holdings Limited (ASX:BTH), a global leader in AI-powered sales enablement automation, has announced its successful acquisition of Modus Engagement, Inc. ("Modus") for US$9.5 million, funded from the $30 million institutional placement raised on December 8, 2023.
Modus, best known as the creator of the Modus Virtual Product Tours and Modus Lead Capture Solution, brings a unique technology and a robust customer base to Bigtincan. This strategic acquisition is anticipated to significantly benefit Bigtincan's multi-hub product strategy by contributing cost synergies of approximately $1 million and providing opportunities for cross-selling and upselling, estimated at about $3.5 million post-integration. It is expected that this move will significantly bolster Bigtincan's financial performance for FY24.
The completion of this acquisition marks the fulfilment of the strategic M&A transactions initially announced in December 2022. Bigtincan is continuously seeking opportunities to expand and innovate its product portfolio to provide the best solutions for its customers.
As part of its ongoing commitment to advance its Generative AI family of products - GenieAI™, Bigtincan has entered into a binding agreement to borrow $15 million from Regal Funds Management Pty Limited. Regal, one of Bigtincan's largest institutional shareholders, will act as the trustee for one or more funds.
In other strategic updates, Bigtincan's Independent Board Committee (IBC) is actively engaged with several parties expressing interest in potential control transactions. The indicative price stands at or slightly above 80 cents per share, as previously announced. Further details on these discussions will be released to the market before the full-year results in August 2023.
The acquisition of Modus and the new financing arrangements underscore Bigtincan's commitment to continuously improving its products and services, seeking strategic growth opportunities and creating sustainable shareholder value.
Contact details:
Jane Morgan