TORONTO, March 10, 2025 (GLOBE NEWSWIRE) -- NowVertical Group Inc. (TSXV: NOW) ("NowVertical" or the "Company"), a leading data and AI solutions provider, today announced the next phase of its strategic growth plan, as the benefits of its integration efforts begin to drive tangible results. In addition, NowVertical is pleased to announce that it has entered into debt settlement agreements (the “Agreements”) with certain employees of the Company.
Integration and Growth
Since its inception, NowVertical has undergone a transformational journey:
Phase 1: Acquisition - Built a global portfolio of 12 acquisitions to secure core capabilities.
Phase 2: Integration - Unified the organisation under its "One Brand, One Business" strategy, eliminating silos and aligning global operations.
With these foundational phases complete, NowVertical is now positioned to fully capitalise on its integrated business, entering its next phase of expansion:
Phase 3: Growth - Leveraging integration to drive organic revenue growth, positioning for opportunistic acquisitions and delivering sustained shareholder value.
NowVertical is uniquely positioned for accelerated growth, underpinned by five core drivers:
Relationships with 100+ enterprise clients.
High-value and long-term engagement, with the top 30 clients each averaging $700K of revenue per year.
Critical technology partnerships, including Google Cloud Premier Partnership, Microsoft, Anaplan and Qlik.
Exposure to key growth markets, both in high-demand data & AI solutions and strategic geographies.
A scalable operating model, built to support enterprise data initiatives.
With these growth levers in place, NowVertical’s integration strategy is designed to accelerate its trajectory towards achieving its first major operational milestone, being $50M revenue run rate and $10M run rate EBITDA with 10% of revenue derived from integration-driven activities to evidence this acceleration.
Accelerating Growth Through Integration
NowVertical’s next phase of growth is powered by three integration pillars, designed to deliver greater value to enterprise clients and maximise shareholder returns.
1️. Strategic Account Integration – Capitalising on enterprise account headroom by unlocking multi-market expansion opportunities within its existing enterprise client base of over 100+ enterprise relationships.
2️. Partnership Integration – Maximising the impact of strategic technology partners (Google Cloud Premier Partner, Microsoft, Anaplan, and Qlik) on a global rather than regional scale, enhancing partnership status and unlocking new client opportunities.
3️. Capability Integration – Delivering a unified, high-value service offering enabling historically fragmented capabilities to be delivered to existing clients across the globe.
These initiatives were previously constrained by operational silos, with capabilities and market access fragmented across NowVertical’s acquired businesses. The implementation of the "One Brand, One Business" model since January 2024 has strengthened NowVertical’s ability to overcome these barriers by creating a cohesive, high-impact organisation that is well positioned to effect integration and to deliver the following benefits:
Benefits Graphic
A Clear Path to High-Value, Scalable Growth
With integration efforts now delivering real business impact, NowVertical is entering a new phase of focused expansion focused on high-margin opportunities.
"Our integration strategy has created the foundation for scalable, predictable growth," said Sandeep Mendiratta, CEO of NowVertical. "Now, we are shifting our focus to execution—expanding enterprise accounts, strengthening our partnerships, and fully leveraging our AI and data capabilities across our two core markets. The $50M revenue and $10M EBITDA revenue run rate milestone is the first validation of how this strategy translates into real shareholder value, 10% of our revenue from integration related activities signals how we deliver this sustainably and grow beyond it."
NowVertical is now positioned to operate as a fully integrated enterprise AI and data solutions provider, ensuring sustained value creation for investors.
Debt Settlement Agreements
Pursuant to the Agreements, the Company has agreed to settle an aggregate of CAD$35,220.62, representing the net amount of certain bonus entitlements owing to certain employees, less applicable statutory withholdings and deductions, through the issuance of Class A Subordinate voting shares in the capital of the Company (the “Subordinate Voting Shares”).
Subject to receipt of TSX Venture Exchange (the “TSXV”) approval, the Company will issue an aggregate of 93,917 Subordinate Voting Shares (collectively, the "Settlement Shares") at a price of C$0.375 per share, representing the March 7, 2025 market closing price of the Subordinate Voting Shares traded on the TSXV. Upon issuance, the Settlement Shares will be subject to a statutory hold period of four months plus a day from the issuance date, as per applicable securities regulations.
About NowVertical Group Inc.
The Company is a global data and analytics company which helps clients transform data into tangible business value with AI, fast. Offering a comprehensive suite of solutions and services the Company enables clients to quickly harness the full potential of their data, driving measurable outcomes and accelerating potential return on investment. Enterprises optimize decision-making, improve operational efficiency, and unlock long-term value from their data using the Company's AI-Infused first party and third-party technologies. NowVertical is growing organically and through strategic acquisitions. For further details about NowVertical, please visit www.nowvertical.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking information and forward-looking information within the meaning of applicable Canadian securities laws (together "forward-looking statements"), including, the ability of the Company to benefit from prior acquisitions, the benefits of integration of the Company’s operations, the accelerations of the Company’s growth trajectory, the ability of the Company to achieve stable growth, the ability of the Company to capitalize on existing relationships, the Company’s ability to achieve it operational growth milestones, the ability of the Company to secure high-margin opportunities, the results of the Company’s efforts, statements pertaining to the approval of the TSXV and the issuance of the Settlement Shares, and the associated results of the transactions contemplated in this press release on NowVertical’s business, finances and operations. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies, certain of which are unknown. Forward-looking statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance, or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by the forward-looking statements and the forward-looking statements are not guarantees of future performance. Forward-looking statements are qualified in their entirety by inherent risks and uncertainties, including: adverse market conditions; risks inherent in the data analytics and artificial intelligence sectors in general; risks inherent in the Company’s relationships with customers, clients and partners; regulatory and legislative changes; that future results may vary from historical results; inability to obtain any requisite future financing on suitable terms; any inability to realize the expected benefits and synergies of acquisitions, dispositions and integration; that market competition may affect the business, results and financial condition of the Company and other risk factors identified in documents filed by the Company under its profile at www.sedarplus.com, including the Company's management's discussion and analysis for the year ended December 31, 2023. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
