Banzai International (BNZI) Signs Acquisition of Vidello

Banzai International, Inc. (NASDAQ: BNZI) today announced that it has signed a definitive agreement to acquire Vidello, a technology provider of video hosting and marketing suite solutions for businesses.

The acquisition is expected to grow revenue by $6.5M and increase EBITDA by $2.3M for the twelve-month period ended September 30, 2024 on a pro-forma basis. Vidello financials are preliminary and unaudited, and subject to adjustment. Banzai will pay up to an aggregate of $7M in a mix of cash equity to Vidello’s shareholders, subject to certain holdback amounts and future performance targets.

Based in London, Vidello offers a comprehensive video hosting and marketing suite that provides entrepreneurs, startups, agencies, and online businesses with tools to grow their businesses.

Vidello’s key offerings include:

• CreateStudio: An award-winning video creation app that allows users to easily produce eye-catching 3D character video content for social media and websites.
• PhotoVibrance: A tool that transforms static images into moving motion pictures to capture attention.
• Twinkle: An all-in-one audio platform for creators and agencies, featuring premium royalty-free music tailored for video projects.
• Vidello: A 3-in-1 video hosting, player, and collaboration tool that allows users to showcase videos with a customizable, lightning-fast player. Features include a collaboration portal and in-play marketing calls-to-action for lead generation and sales optimization.

Vidello has over 90,000 customers. Their flagship CreateStudio product has been named a Top 3 Best Rated product in the video maker category by Capterra¹, and a High Performer by G2².

“We’re doubling down on building the best suite of video products by adding Vidello. We believe that Vidello has created the best product in the world for making amazing 3D videos,” said Joe Davy, Founder and CEO of Banzai. Mr. Davy expressed his further excitement about the acquisition by stating his belief that “Video content is the future of marketing across every platform. Vidello’s products make it significantly easier to create stunning, attention-grabbing video content without any technical expertise.”

Josh Ratta, Co-Founder and CEO of Vidello, commented, “Having established a strong presence in the video space, we’re thrilled to partner with Banzai. This collaboration comes at the perfect time, offering an exciting opportunity to expand our video tools and reach a wider audience. By integrating Vidello’s capabilities with Banzai’s AI-powered platform, we strive to help businesses create and host engaging videos that elevate their marketing efforts.”

Banzai's vision is to build a comprehensive suite of AI-powered marketing tools that make marketers lives faster and easier. The Vidello acquisition will play a pivotal role in accelerating revenue growth by delivering innovative solutions to our customers.

Transaction Details

Under the terms of the agreement, the aggregate merger consideration shall be up to $5.5M in cash (subject to certain holdback amount as set forth in the acquisition agreement) and a number of shares of Banzai Class A Common Stock, and/or Pre-Funded Warrants in lieu thereof, equal to $1.5 million. Additional details regarding the acquisition are included in the Company’s Form 8-K filed with the Securities and Exchange Commission on December 20, 2024. The transaction is expected to close in December 2024, subject to the satisfaction of customary closing conditions.

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