Onfolio Holdings Inc. Signs Agreement To Acquire Eastern Standard Business
Onfolio Holdings Inc. (Nasdaq: ONFO) has announced an agreement to acquire the majority interest in Eastern Standard 's assets. The acquisition, expected to close on October 1, 2024, will be facilitated by Onfolio's Special Purpose Vehicles. Eastern Standard, a digital marketing services provider, generated approximately $4,000,000 in revenue and $630,000 in unaudited adjusted EBITDA for the fiscal year ended 12/31/2023.
The purchase price is $2,160,000 for 90% ownership. Onfolio will own 70% through a combination of Series A Preferred Shares and secured promissory notes, while the SPV program will invest $500,000 for 20% ownership. This structure allows Onfolio to complete the acquisition without upfront cash or issuing common shares, aiming to support the company's efforts towards profitability.
Onfolio Holdings Inc. (Nasdaq: ONFO) ha annunciato un accordo per acquisire la maggioranza degli asset di Eastern Standard. L'acquisizione, prevista per chiudere il 1 ottobre 2024, sarà facilitata dai veicoli ad uso speciale di Onfolio. Eastern Standard, un fornitore di servizi di marketing digitale, ha generato circa $4,000,000 di ricavi e $630,000 di EBITDA rettificato non verificato per l'anno fiscale chiuso il 31/12/2023.
Il prezzo d'acquisto è di $2,160,000 per il 90% della proprietà. Onfolio deterrà il 70% attraverso una combinazione di Azioni Preferenziali Serie A e note promissorie garantite, mentre il programma SPV investirà $500,000 per il 20% della proprietà. Questa struttura consente a Onfolio di completare l'acquisizione senza cash upfront o emissioni di azioni ordinarie, mirando a supportare gli sforzi dell'azienda verso la redditività.
Onfolio Holdings Inc. (Nasdaq: ONFO) ha anunciado un acuerdo para adquirir la mayoría de los activos de Eastern Standard. Se espera que la adquisición se cierre el 1 de octubre de 2024 y será facilitada por los Vehículos de Propósito Especial de Onfolio. Eastern Standard, un proveedor de servicios de marketing digital, generó aproximadamente $4,000,000 en ingresos y $630,000 en EBITDA ajustado no auditado para el año fiscal que finalizó el 31/12/2023.
El precio de compra es de $2,160,000 por el 90% de la propiedad. Onfolio poseerá el 70% a través de una combinación de Acciones Preferidas Serie A y notas promisorias aseguradas, mientras que el programa SPV invertirá $500,000 por el 20% de la propiedad. Esta estructura permite a Onfolio completar la adquisición sin efectivo inicial ni emisión de acciones comunes, con el objetivo de apoyar los esfuerzos de la empresa hacia la rentabilidad.
온폴리오 홀딩스 주식회사(Nasdaq: ONFO)는 이스턴 스탠다드의 자산에 대한 대다수 지분 인수 계약을 발표했습니다. 이번 인수는 2024년 10월 1일에 종료될 것으로 예상되며, 온폴리오의 특별목적법인(SPV)을 통해 이루어질 예정입니다. 디지털 마케팅 서비스 제공업체인 이스턴 스탠다드는 2023년 12월 31일 종료된 회계연도에 약 $4,000,000의 수익과 $630,000의 검토되지 않은 조정 EBITDA를 기록했습니다.
구매 가격은 90% 소유권에 대해 $2,160,000입니다. 온폴리오는 시리즈 A 우선주와 담보가 설정된 약속어음의 조합을 통해 70%를 소유하게 되며, SPV 프로그램은 20% 소유권을 위해 $500,000를 투자할 것입니다. 이 구조는 온폴리오가 현금 없이 또는 일반 주식을 발행하지 않고 인수를 완료할 수 있게 하여, 회사의 수익성 향상을 위한 노력을 지원하는 것을 목표로 합니다.
Onfolio Holdings Inc. (Nasdaq: ONFO) a annoncé un accord pour acquérir la majorité des actifs d'Eastern Standard. L'acquisition, qui devrait se conclure le 1er octobre 2024, sera facilitée par les véhicules à but spécial d'Onfolio. Eastern Standard, un fournisseur de services de marketing numérique, a généré environ $4,000,000 de revenus et $630,000 d'EBITDA ajusté non audité pour l'exercice clos le 31/12/2023.
Le prix d'achat est de $2,160,000 pour 90 % de la propriété. Onfolio détiendra 70 % par le biais d'une combinaison d'actions privilégiées de série A et de billets à ordre sécurisés, tandis que le programme SPV investira $500,000 pour 20 % de la propriété. Cette structure permet à Onfolio de réaliser l'acquisition sans paiement initial ni émission d'actions ordinaires, visant à soutenir les efforts de l'entreprise en faveur de la rentabilité.
Onfolio Holdings Inc. (Nasdaq: ONFO) hat eine Vereinbarung zur Übernahme der Mehrheitsanteile an den Vermögenswerten von Eastern Standard bekannt gegeben. Der Abschluss der Übernahme wird für den 1. Oktober 2024 erwartet und erfolgt durch die speziellen Zweckgesellschaften (SPV) von Onfolio. Eastern Standard, ein Anbieter von digitalen Marketingdiensten, erzielte im Geschäftsjahr zum 31.12.2023 einen Umsatz von etwa $4,000,000 und ein nicht geprüftes, bereinigtes EBITDA von $630,000.
Der Kaufpreis beträgt $2,160,000 für einen 90%igen Eigentumsanteil. Onfolio wird 70% durch eine Kombination aus Serie A-Vorzugsaktien und besicherten Schuldscheinen besitzen, während das SPV-Programm $500,000 für einen 20%igen Eigentumsanteil investieren wird. Diese Struktur ermöglicht es Onfolio, die Übernahme ohne Vorauszahlung oder Ausgabe von Stammaktien abzuschließen und unterstützt die Bemühungen des Unternehmens auf dem Weg zur Rentabilität.
- Acquisition of Eastern Standard , a profitable digital marketing services provider
- Eastern Standard generated $4,000,000 in revenue and $630,000 in adjusted EBITDA in 2023
- Acquisition structure avoids dilution of Onfolio shareholders
- Potential for cross-promotion and increased service capabilities
- Acquisition expected to support Onfolio's efforts towards profitability
- Onfolio taking on $1,250,000 in debt through promissory notes
- Issuance of $410,000 in Series A Preferred Shares, which will pay dividends
Insights
This acquisition marks a significant move for Onfolio Holdings, expanding its portfolio in the digital marketing sector. The
Key financial points:
- Eastern Standard's 2023 revenue:
$4 million - Unaudited adjusted EBITDA:
$630,000 - Acquisition price implies a valuation multiple of about 3.8x EBITDA, which appears reasonable for a digital marketing firm
- Onfolio's
$410,000 in Series A Preferred Shares and$1.25 million in secured promissory notes demonstrate a creative financing approach
The use of SPVs for partial ownership and non-dilutive funding is a clever strategy to fuel growth without immediate shareholder dilution. However, investors should monitor how quickly Onfolio can integrate Eastern Standard and realize synergies to justify the acquisition cost and debt burden.
This acquisition positions Onfolio strategically in the competitive digital marketing landscape. Eastern Standard's client roster, including high-profile names like Neil deGrasse Tyson and Cornell Law, suggests a strong market position and potential for cross-selling opportunities within Onfolio's portfolio.
The deal aligns with industry trends of consolidation in digital marketing, where scale and diverse service offerings are increasingly important. By acquiring Eastern Standard as a platform for further growth, Onfolio is setting the stage for potential market share expansion and enhanced service capabilities.
Investors should watch for:
- Integration challenges and retention of key Eastern Standard personnel
- Onfolio's ability to leverage Eastern Standard's client relationships for portfolio-wide growth
- Potential for margin improvement through operational synergies
While the acquisition appears promising, success will depend on effective execution and market conditions in the digital marketing sector.
WILMINGTON, Del., Sept. 24, 2024 (GLOBE NEWSWIRE) -- Onfolio Holdings Inc. (Nasdaq: ONFO, ONFOW) (the "Company" or "Onfolio"), a company that acquires and manages a diversified portfolio of online businesses, today announced that it has entered into an asset purchase agreement to acquire the majority interest in the assets of Eastern Standard LLC. The Company expects the acquisition to close October 1, 2024. The asset purchase agreement includes customary representations, warranties and covenants by the parties and the closing of the asset purchase agreement is subject to customary closing conditions.
As with the previous DDS Rank acquisition, this acquisition will occur with the assistance of Onfolio’s Special Purpose Vehicle “Onfolio Agency SPV LLC,” and an additional SPV “Onfolio Agency SPV 2 LLC” which will acquire a minority interest in the business.
Eastern Standard provides clients with digital marketing services including integrated branding, and digital customer experiences. Their past client roster includes Neil de Grass Tyson, and Cornell Law, among others. For the fiscal year ended 12/31/2023, Eastern Standard generated approximately
“Eastern Standard is an excellent business, with a strong leadership team and another exciting acquisition for us. Similar to Revenuezen, Eastern Standard is not alone a standalone business, but a platform for us to use for further acquisitions targeting organic and inorganic growth,” commented Onfolio CEO Dominic Wells. “As we build out the agency side of our portfolio, we continue to both level up the quality of business we own, and increase our capabilities to serve clients and cross-promote services.”
On the deal structure, Wells added, “As with DDS Rank, we will complete this acquisition without Onfolio Holdings paying any upfront cash or issuing any common shares.”
"The purchase price is
The Series A Preferred Shares and secured promissory notes to be issued by Onfolio will pay dividends and interest and are not convertible into Onfolio common shares.
“We have mentioned previously that we have several acquisitions with structures similar to the DDS Rank and Eastern Standard transactions and should have enough capital to close because of our special purpose vehicle program’s non-dilutive funding,” said Dom Wells. “This acquisition should help us in our efforts to achieve profitability,” concluded Wells.
About Eastern Standard
Eastern Standard, a Philadelphia-based combined web and branding agency since 2014, was created to help clients navigate the creation of integrated branding and digital customer experiences. Using a data-first approach, Eastern Standard blends strategy, creativity, and technology to drive end-to-end brand and digital transformation.
About Onfolio Holdings
Onfolio acquires and manages a diversified portfolio of online businesses. Onfolio acquires business that meet its investment criteria, being that such businesses operate in sectors with long-term growth opportunities, have positive and stable cash flows, face minimal threats of technological or competitive obsolescence and can be managed by our existing team or have strong management teams largely in place. The Company excels at finding acquisition opportunities where the seller has not fully optimized their business, and Onfolio's experience and skillset allows it to add increased value to these existing businesses. Visit www.onfolio.com for more information.
Safe Harbor Statement
The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "explores," "expects," "anticipates," "continues," "estimates," "projects," "intends," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing new customer offerings, changes in customer order patterns, changes in customer offering mix, continued success in technological advances and delivering technological innovations, delays due to issues with outsourced service providers, those events and factors described by us under the caption "Risk Factors" included in our SEC filings and other risks to which our Company is subject, and various other factors beyond the Company's control.
Investor Contact
investors@onfolio.com
FAQ
What is the value of Onfolio's acquisition of Eastern Standard ?
When is Onfolio (ONFO) expected to close the acquisition of Eastern Standard?
How much revenue did Eastern Standard generate in the fiscal year 2023?
What percentage of Eastern Standard will Onfolio (ONFO) own after the acquisition?
How is Onfolio (ONFO) financing the acquisition of Eastern Standard?
