PandoLogic, a provider of an AI-powered programmatic job advertising platform, is being acquired by Veritone Inc., a provider of an operating system for artificial intelligence.
“This transformative acquisition builds on the strength of our organic growth, expands our addressable market with a new diversified revenue stream, and unlocks new growth and development opportunities as we integrate the platforms,” Veritone Chairman and CEO Chad Steelberg said.
PandoLogic will operate as a wholly owned subsidiary of Denver-based Veritoen with no material changes expected for PandoLogic employees and customers.
Total consideration is $150 million; a valuation of New York-based PandoLogic at approximately three times its 2021 revenue. PandoLogic is generating more than $50 million in software-as-a-service and related revenue and has more than $25 million in EBITDA on a pro forma 2021 basis.
The $150 million in consideration includes $50 million in cash and $35 million in Veritone stock. The remain $65 million in cash and stock is based on earnouts tied to financial performance in fiscal 2021 and 2022.
The deal is expected to close in mid-September.
“With our shared vision for AI and strong cultural alignment, we are looking forward to becoming a part of the Veritone family,” said Terrance Baker, CEO of PandoLogic. “In combination with Veritone, we both will be able to utilize our cognitive engines to help customers create even deeper insight and efficiencies in their hiring practices and beyond.”