Announcement Highlights:
Updater is acquiring its largest commercial partner, Bridgevine, the leading commerce platform for home subscription products, which will be integrated into the Updater Home Services DivisionUpdater has secured total financing of US$95 million consisting of a Senior and Junior Credit investment totaling US$75 million to finance the acquisition and US$20 million in additional growth capital, led by Second Century Ventures, the strategic investment fund of the National Association of REALTORS
“In addition, we are very pleased with the minimally dilutive US$95 million financing package led by top tier US-based investors. The financing package will enable the acquisition of Bridgevine and strengthen our balance sheet with US$20 million of additional growth capital. We are now in a great position as a private company to materially increase our TTV in 2020 and deliver a more innovative User experience.”
The acquisition and integration of Bridgevine into the Updater Home Services Division will enable an acceleration plan that involves
elivering a superior mover experience: Bridgevine has integrated its platform with many of the largest home services providers in the US. With these digital integrations, users will receive increased transparency over the pricing and availability of various home subscription products. Users will also benefit from increased efficiency for completing transactions within the Updater experience and access an expanded moving concierge program powered by Bridgevine’s market-leading call center capabilities.Expanding Updater’s distribution: Updater will offer its platform to Bridgevine’s existing audience and partners, which is almost entirely incremental to Updater’s current User base.Expanding suite of products: The combined company will offer home subscription providers a more compelling portfolio of products and services. Further, Updater will deploy new product offerings significantly faster than it could do so alone.Extracting synergies: Both companies will benefit from each other’s customer relationships, industry experience, internal talent, technology, and centers of excellence.
TTV is a leading indicator for the Company’s highest-margin and most scalable revenue opportunity (platform revenue). Updater’s 2019 goal is to achieve US$400 million in TTV, nearly triple 2018’s TTV of US$140 million. 2019 TTV through Q3 equalled approximately US$329 million, and with only two weeks until the end of calendar year 2019, Management is pleased to confirm that Updater has already surpassed the 2019 goal of US$400 million.
It remains a goal of the Company to
provide shareholders with mechanisms for liquidity and the Board is currently assessing a number of options. In Q1 2020, Management will provide a comprehensive update on the performance of the business through the end of Q4 2019, an update on the progress of the integration of the Bridgevine business into the Updater Home Services Division, early results of the new acceleration plan and a proposed plan for facilitating shareholder liquidity.
