Banzai Announces Definitive Agreement to Acquire OpenReel, Growing TTM Revenue 152% to $10.9M

Rhea-AI Summary

Banzai International (NASDAQ: BNZI) has signed a definitive agreement to acquire OpenReel, a digital video creation platform, in a stock deal valued at $19.6 million. The acquisition will grow Banzai's TTM revenue by 152% to $10.9M. OpenReel's platform enables companies to create high-quality branded video content efficiently, serving enterprise customers including Bristol Myers Squibb, Ingram Micro, and DXC Technology.

The transaction, expected to close in December 2024, will be executed through shares of Banzai Class A Common Stock and/or Pre-Funded Warrants. This acquisition aligns with Banzai's vision to build an AI-powered marketing technology platform and complements their existing product Demio.

Positive

• TTM revenue growth of 152% to $10.9M following acquisition
• Acquisition of enterprise-grade video platform with notable clients
• All-stock transaction preserves cash resources
• Strategic expansion of product portfolio in video marketing space

Negative

• Potential shareholder dilution due to stock-based acquisition
• $19.6M acquisition cost in stock/warrants

Insights

Financial Analyst

This acquisition marks a significant strategic move for Banzai, with OpenReel's addition projected to boost TTM revenue by 152% to $10.9M. The $19.6M stock-based transaction structure preserves cash while expanding Banzai's MarTech portfolio. OpenReel's enterprise client roster, including Bristol Myers Squibb and DXC Technology, adds significant value and credibility to Banzai's offering. The all-stock deal structure also indicates confidence in Banzai's equity value proposition. The strategic fit is compelling - integrating OpenReel's video creation platform with Banzai's existing Demio product creates cross-selling opportunities and potential revenue synergies. For a company with an $8.2M market cap, this acquisition represents an ambitious growth strategy that could significantly enhance shareholder value through expanded capabilities and customer base.

Tech Expert

The integration of OpenReel's video creation platform into Banzai's ecosystem represents a strategic technological advancement. OpenReel's solution addresses a critical pain point in enterprise marketing - the need for rapid, high-quality video content creation while maintaining brand compliance. The platform's ability to facilitate remote direction, recording and collaboration on HD video projects aligns perfectly with current market demands. The synergy with Banzai's Demio platform creates a comprehensive video marketing suite, positioning them competitively in the growing MarTech space. Their focus on AI-powered marketing technology suggests potential future integrations that could leverage AI for automated video creation and optimization, putting them at the forefront of marketing technology innovation.

Banzai Adds Enterprise-Grade Branded Video Creation and Management Solution OpenReel to Growing Product Family

SEATTLE, Dec. 10, 2024 (GLOBE NEWSWIRE) -- Banzai International, Inc. (NASDAQ: BNZI) (“Banzai” or the “Company”), a leading marketing technology company that provides essential marketing and sales solutions, today announced that it has signed a definitive agreement to acquire OpenReel, a leading digital video creation platform.

OpenReel enables companies to rapidly create high-quality, branded video content. Their solution allows companies to direct, record, create, and collaborate on high-definition video projects, dramatically reducing the time to create brand-compliant video content. OpenReel’s enterprise customer base includes global organizations, such as Bristol Myers Squibb, Ingram Micro, DXC Technology, Insider Inc., and US Steel.

"Video is the future of enterprise marketing," said Joe Davy, Founder and CEO of Banzai. "OpenReel gives their customers a 10x advantage when creating branded video content. Their enterprise customers are a testament to the power of their solution."

“We’re thrilled to join the Banzai family and take OpenReel to new heights,” said Lee Firestone, CEO and co-founder of OpenReel. “With Banzai’s support, we’re confident in accelerating the growth of our technology while becoming an integral part of their robust suite of marketing tools. We believe that OpenReel is the perfect complement to Demio, enabling seamless cross-collaboration and enhancing the value we deliver to marketers worldwide.”

Banzai’s vision is to build an AI-powered marketing technology platform to help businesses of all sizes grow. Acquiring mission-critical MarTech products like OpenReel will allow Banzai to drive customer growth by offering new solutions to existing customers to create long-term value for our shareholders.

Transaction Details

Under the terms of the agreement, the aggregate merger consideration shall be a number of shares of Banzai Class A Common Stock, and/or Pre-Funded Warrants exercisable for shares of Class A Common Stock in lieu thereof, equal to $19.6 million. Additional details regarding the acquisition are included in the Company’s Form 8-K filed with the Securities and Exchange Commission on December 10, 2024. The transaction is expected to close in December 2024, subject to the satisfaction of customary closing conditions.

About OpenReel

OpenReel is a leading enterprise video creation and management solution that empowers companies to create high-quality content at scale and on brand. OpenReel enables businesses of all sizes to cut down on the time-and resource-intensive process of video creation and scale content creation initiatives efficiently, effectively, and securely. OpenReel is trusted by a wide range of customers from small businesses to the Fortune 500. OpenReel is based in New York, with its team distributed worldwide. To learn more about the company, visit: www.openreel.com.

About Banzai

Banzai is a marketing technology company that provides AI-enabled marketing and sales solutions for businesses of all sizes. On a mission to help their customers grow, Banzai enables companies of all sizes to target, engage, and measure both new and existing customers more effectively. Banzai customers include Cisco, New York Life, Hewlett Packard Enterprise, Thermo Fisher Scientific, Thinkific, Doodle and ActiveCampaign, among thousands of others. Learn more at www.banzai.io. For investors, please visit https://ir.banzai.io.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often use words such as “believe,” “may,” “will,” “estimate,” “target,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “propose,” “plan,” “project,” “forecast,” “predict,” “potential,” “seek,” “future,” “outlook,” and similar variations and expressions. Forward-looking statements are those that do not relate strictly to historical or current facts. Examples of forward-looking statements may include, among others, statements regarding Banzai International, Inc.’s (the “Company’s”): future financial, business and operating performance and goals; annualized recurring revenue and customer retention; ongoing, future or ability to maintain or improve its financial position, cash flows, and liquidity and its expected financial needs; potential financing and ability to obtain financing; acquisition strategy and proposed acquisitions and, if completed, their potential success and financial contributions; strategy and strategic goals, including being able to capitalize on opportunities; expectations relating to the Company’s industry, outlook and market trends; total addressable market and serviceable addressable market and related projections; plans, strategies and expectations for retaining existing or acquiring new customers, increasing revenue and executing growth initiatives; and product areas of focus and additional products that may be sold in the future. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements. Therefore, investors should not rely on any of these forward-looking statements. Factors that may cause actual results to differ materially include changes in the markets in which the Company operates, customer demand, the financial markets, economic, business and regulatory and other factors, such as the Company’s ability to execute on its strategy. More detailed information about risk factors can be found in the Company’s Annual Report on Form 10-K and the Company’s Quarterly Reports on Form 10-Q under the heading “Risk Factors,” and in other reports filed by the Company, including reports on Form 8-K. The Company does not undertake any duty to update forward-looking statements after the date of this press release.

Investor Relations
Chris Tyson
Executive Vice President
MZ Group - MZ North America
949-491-8235
BNZI@mzgroup.us
www.mzgroup.us

Media
Rachel Meyrowitz
Director, Demand Generation, Banzai
media@banzai.io

FAQ

What is the value of Banzai's (BNZI) acquisition of OpenReel?

Banzai is acquiring OpenReel for $19.6 million in Class A Common Stock and/or Pre-Funded Warrants.

How much will Banzai's (BNZI) revenue grow after acquiring OpenReel?

The acquisition will increase Banzai's TTM revenue by 152% to $10.9M.

When is Banzai's (BNZI) acquisition of OpenReel expected to close?

The acquisition is expected to close in December 2024, subject to customary closing conditions.

Which major enterprise customers does OpenReel serve?

OpenReel serves enterprise customers including Bristol Myers Squibb, Ingram Micro, DXC Technology, Insider Inc., and US Steel.