Business
EMERGE Signs Definitive Agreement to Acquire Viral Loops, a Profitable B2B Referral Marketing Platform, Announces $1.8M Private Placement
EMERGE Signs Definitive Agreement to Acquire Viral Loops, a Profitable B2B Referral Marketing Pla...
About this update from Emerge Commerce Ltd
[{"type":"text","content":"\n\n\nEMERGE Signs Definitive Agreement to Acquire Viral Loops, a Profitable B2B Referral Marketing Platform, Announces $1.8M Private Placement\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nCanada NewsWire\n\n\nTransaction Expected to be Immediately Accretive to Earnings and Cash Flow Viral Loops enables businesses to run referral campaigns to acquire and retain customersViral Loops generated CA$1.3M revenue, ~86% gross margin, and CA$800K Adj. EBITDA(1) (~62% Adj. EBITDA(1) margin) in 2025 (unaudited)Purchase price of CA$2.3M (~2.9x Adj. EBITDA(1) multiple)Inclusive of Viral Loops, EMERGE's Pro Forma 2025 Adj. EBITDA would have been $2.2M, a ~52% increase, based on preliminary (unaudited) resultsFirst B2B acquisition under newly formed \"EMERGE B2B\" vertical, set up to enhance the Company's overall financial profile and drive portfolio synergiesThe Company announces a concurrent, non-brokered private placement for $1.8MTORONTO, Feb. 19, 2026 /CNW/ - EMERGE Commerce Ltd. (TSXV: ECOM) (\"EMERGE\" or the \"Company\"), a portfolio of premium e-commerce brands and technologies, is pleased to announce the signing of a definitive agreement dated effective February 19, 2026, through its wholly owned subsidiary, Emerge Brands Inc. to acquire substantially all assets of Viral Loops and specified liabilities from Wishpond Technologies Ltd. (the 'Seller\") (the \"Transaction\").\nFounded in 2016, Viral Loops is a highly profitable, B2B referral marketing platform that enables businesses to design and manage subscription-based referral programs that drive word-of-mouth, increase retention, and reduce customer acquisition costs.Viral Loops operates an asset-light, recurring revenue model with high gross margins and strong cash flow conversion. The business serves a diversified base of global B2B customers.For the year ended December 31, 2025, Viral Loops generated CA$1.3M in revenue, with gross margins of ~86%, and Adj. EBITDA(1) of CA$800K (~62% Adj. EBITDA(1) margin), based on unaudited results.Viral Loops will continue to maintain its tea...