The Israeli company PandoLogic is being sold to the American company Veritone for $ 150 million

The Israeli company PandoLogic, which assists large companies in recruiting employees through artificial intelligence, is being sold to the American company Veritone for $ 150 million in cash and shares, the American company announced.
Veriton, based in Costa Mesa, California, is developing the first artificial intelligence operating system, and the acquisition will allow it to expand into the field of manpower and recruitment. The deal consists of $ 50 million in cash, $ 35 million in Veriton shares, and $ 65 million in cash and shares - another amount that depends on the company's performance in the current year and 2022. Also, the cash accumulated in the company - estimated at several tens of millions of dollars - will remain in the hands of the sellers. Buriton said in a statement that Pendlogic's projected revenue for the current year is $ 50 million, and that EBITDA (earnings before interest, taxes, depreciation and amortization) will be $ 25 million.
Veriton is trading at a market value of $ 670 million, after its stock rose 65% in the past year. However, the stock is nearly 60% away from its peak last February. According to a forecast by five analysts surveying the company, Veriton is expected to grow by 40% this year, reaching revenues of $ 80 million - not including the current acquisition. At the end of the first quarter, the company had $ 128 million in cash, and its free cash flow reached $ 6 million last year.
Pandologic was founded by Gal Almog in 2000. Its first product was a job portal with a smart engine that can be embedded in news sites, connecting employers and job seekers. Three years ago the company made a significant change in the product and target audience, and today it helps large companies recruit hundreds and thousands of employees. Its platform helps in writing the appropriate texts, and decides where the most effective place to publish them, in order to motivate large and fast recruitments.
The company has raised $ 25 million to date. Given that this is a long-standing company, this is an amount that is considered low these days. It is managed by Terry Baker, who was the company's president eight years ago as CEO, and Moti Moore, VP of operations and director of development activities in Israel.
Baker, who has worked at the company for ten years, says in an interview that "we were a successful company, but we had bigger ambitions. We changed the company name, the platform and the target audience. We decided to sell directly to employers and introduce artificial intelligence to a market where they did not use artificial intelligence."
"We improved automation and it changed everything for us. Not every company goes through such a change after many years. Even before the outbreak of the corona we decided to start focusing on the logistics and health sectors, and then the epidemic broke out. Recruitment difficulties were reflected in these sectors. Ours, "he added.
"The company has worked very hard, given a new vision and everyone is happy now. On a personal level, I am very proud of what has happened at the company in the last three years," said Omri Ben David, general partner at Viola Ventures. Viola has invested $ 8.4 million in the company, and owns 30% of it. Additional shareholders include the Edison Fund, which holds a share similar to that of Viola, and the Orix Fund.