Veritone (NASDAQ: VERI) Completes Divestiture and Provides Financial Updates

Veritone, Inc. announced the successful completion of its Divestiture agreement with Oxford Buyer, LLC, an affiliate of Insignia Capital Group L.P., as of October 17, 2024. The equity purchase transaction saw Oxford Buyer acquire all issued and outstanding equity of Veritone One, a wholly-owned subsidiary of Veritone, for a total purchase price of up to $104.0 million, subject to adjustments and earnout targets. The Divestiture, valued at a total of $104.0 million, was structured as a simultaneous “sign and close” transaction, with Veritone receiving cash proceeds of $59.1 million on the Closing Date.

As part of the agreement, certain amounts totaling $18.0 million subject to earnout provisions, $20.3 million for purchase price adjustments, and $6.7 million placed in escrow accounts are being managed. Veritone could potentially receive an earnout of up to $18.0 million in cash based on achieving specified net revenue targets by Veritone One from January 1, 2025, to December 31, 2025.

Following the Divestiture, Veritone reported a headcount of approximately 500 employees. The agreement includes standard representations, warranties, and covenants alongside indemnification provisions. Moreover, Veritone is subject to non-competition and non-solicitation commitments, restricting certain competitive activities post-Divestiture for a four-year period.

Subsequently, on October 22, 2024, Veritone utilized net cash proceeds from the Divestiture to repay $30.5 million of its outstanding term loan principal, together with accrued interest and a prepayment premium totaling $3.3 million. As of the Repayment Date, an aggregate of $43.1 million principal remained under the senior secured term loan, while the company maintained approximately $27.3 million in cash and cash equivalents.

Additionally, Veritone released preliminary and unaudited operating results for the three and nine months ended September 30, 2024, encapsulating the company’s estimates for the period. These figures, while not yet audited, are deemed as important supplemental measures by management for performance evaluation.

Furthermore, an investor presentation was made available on Veritone’s website on October 23, 2024, intended for sharing with investors and other stakeholders periodically. The non-GAAP financial measures and pro forma financial information shared in this report are subject to risk factors and uncertainties mentioned in Veritone’s filings with the Securities and Exchange Commission.

The forward-looking statements included in the report highlight potential risks and uncertainties that may affect actual results, emphasizing the company’s readiness to adapt based on evolving information post-closing procedures. The complete details of the Divestiture agreement and associated financial updates can be found in the official filing on Form 8-K made by Veritone with the Securities and Exchange Commission.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Veritone’s 8K filing here.

About Veritone

Veritone, Inc, together with its subsidiaries, engages in the provision of artificial intelligence (AI) computing solutions and services in the United States, the United Kingdom, France, Australia, Israel, and India. It develops and operates aiWARE platform, an AI operating system, that uses machine learning algorithms or AI models designed to mimic human cognitive functions, such as perception, prediction, and problem solving and optimization, as well as enables users to transform unstructured data into structured data, and analyze and optimize data to drive business processes and insights.