Wishpond, a Vancouver-based SaaS startup, has entered into a credit agreement with the National Bank of Canada’s Technology and Innovation Banking Group that would give Wishpond a $6 million secured revolving operating line.
Currently, the company claims it has over $7.5 million of cash and no debt on the balance sheet.
Founded in 2009 by Ali Tajskandar, Wishpond provides a digital marketing platform that offers a suite of cloud-based applications and services for business growth. Since then, the company expanded its products’ capabilities to develop a lead generation platform, email marketing platform, and a marketing automation system.
According to Tajskandar, the new credit facility is a step forward for Wishpond in accelerating its growth plans. Currently, the company claims it has over $7.5 million of cash and no debt on the balance sheet.
Juan Leal, Wishpond’s chief financial officer, said that the credit facility will also enable the company to “optimize” its working capital should they need to use it for general corporate purposes or future acquisitions.
The TSX Venture Exchange-listed startup is currently underway with its acquisition strategy, buying multiple companies throughout the year. Wishpond is also listed on the OTCQX Best Market as of June.
In January, Wishpond acquired San Mateo, California-based SaaS startup PersistIQ for $3 million USD. The company also purchased Invigo, a Surrey-based marketing technology company focused on serving medical clinics, where Wishpond agreed to pay $835,000 upfront, plus a a two-year performance earn-out in cash, common shares, or both, based upon Invigo’s adjusted earnings before interest, taxes, depreciation and amortization. In total, Wishpond said it expects to pay up to $3 million.
Most recently, Wishpond also acquired Brax.io, a New York-based startup that provides digital marketing solutions, for $2 million USD.
In June, Wishpond entered a partnership with Stukent, an Idaho-based company that provides digital courseware to integrate Wishpond’s technology on Stukent’s platform and introduce digital marketing and social media assignments.