Apester services 143 global customers including renowned brands such as CNN, RollingStone, The Independent, IKEA and the Australian Football League
Sivota PLC (LSE:SIV), a special opportunities investment vehicle, announced a conditional sales and purchase agreement (SPA) to acquire a majority shareholding in the digital marketing engagement platform Apester for around US$12mln.
Sivota is focused on investing in ‘under the radar’ Israeli technology-related companies and using its experience to introduce change and growth.
Apester generated revenues of US$9.2mln in 2021, up from US$7.2mln the year before, and services around 143 global customers including renowned brands such as CNN, RollingStone, The Independent, IKEA, Australian Football League and more, Sivota said in a statement.
Apester’s platform provides tools to create a range of personalised interactive experiences and applications, including customer surveys, mobile landing pages, onboarding forms, interactive videos, polls, quizzes, custom applications and web stories.
Sivota said the digital experience platform (DXP) market is projected to reach US$43.43bn by 2028, growing at a compound annual growth rate (CAGR) of 13.4% from 2021 to 2028.
“We believe Apester ideally fits our profile of investing in overlooked, high potential technology-backed businesses,” said Sivota CEO Ziv Ben-Barouch.
“The strength of Apester’s technology stack and the marketplace within which it operates, coupled with our own track record in value creation represents a significant growth opportunity.”
The deal is conditional on a placing by Sivota, publication of a prospectus approved by the Financial Conduct Authority (FCA) and readmission of Sivota’s enlarged issued share capital to trading on the London Stock Exchange.
Sivota will receive around 14.95mln preferred seed shares in Apester, equivalent to a stake of 57.5%, for an aggregate price of US$12mln, reflecting a pre-money valuation of Apester of US$16mln.
Apester will use the investment proceeds for its working capital requirements.
Apester has also agreed to contribute up to US$420,000 for Sivota’s legal and other fees in connection with the transaction.
In addition, the two companies are entering into a five-year management services agreement, under which Sivota will provide certain services to Apester for an annual fee equivalent to 2% of Sivota’s investment in Apester.
Sivota will have the right to appoint a majority of directors to the Apester board.
Sivota also said it entered into two conditional convertible loan assignment agreements with lenders to Apester, whereby US$1.575mln in convertible loans will be assigned to Sivota.
The loans will bear an interest rate of 6% a year and can be converted into preferred seed shares in Apester, representing around 5.6% of Apester’s share capital.
If the loans are not converted, Apester must repay them in full in 24 monthly instalments starting February 2024, Sivota said.
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