Veritone, Inc. Announces Sale of Veritone One, LLC and Term Loan Repayment

Veritone, Inc. (NASDAQ: VERI) recently disclosed in an 8-K filing dated October 22, 2024, that it has finalized the sale of its media agency, Veritone One, LLC. The company entered into an Equity Purchase Agreement with Oxford Buyer, LLC, an affiliate of Insignia Capital Group L.P., for a total purchase price of up to $104.0 million. This transaction, known as the “Divestiture,” was completed on October 17, 2024.

Upon the completion of the sale, Veritone received cash proceeds amounting to $59.1 million. The purchase price adjustments included $18.0 million subject to an earnout, $20.3 million for working capital adjustments, and $1.5 million held in a specified escrow account for potential purchase price changes. Additionally, $5.2 million was set aside in escrow accounts for post-closing indemnification claims. Veritone has the opportunity to receive an earnout of up to $18.0 million in cash proceeds based on Veritone One’s net revenue achievement targets between January 1, 2025, and December 31, 2025.

Following the Divestiture, Veritone’s workforce is expected to consist of approximately 500 employees. The company plans to utilize the net cash proceeds from the sale to repay $30.5 million of its outstanding term loan principal, along with accrued interest and a prepayment premium totaling $3.3 million. Consequently, an outstanding principal amount of $43.1 million will remain under the term loan, and Veritone will possess around $27.3 million in cash and cash equivalents.

In conjunction with the Divestiture, Veritone issued a press release on October 22, 2024, confirming the transaction completion and the Term Loan Repayment. This move aligns with the company’s strategy to focus on its core business offerings in enterprise AI software, applications, and services. The Divestiture, allowing Veritone to optimize its balance sheet, aims to enhance shareholder value and position the company for sustainable growth in the AI sector.

Veritone highlighted that forward-looking statements made in the filing should be viewed under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, indicating the use of proceeds, outstanding term loan amounts, cash on hand, potential earnout provisions, and workforce changes, are subject to known and unknown risks and uncertainties that may cause actual results to differ.

The 8-K filing can be accessed for further details regarding the sale of Veritone One and the Term Loan Repayment.

This article contains information extracted from Veritone’s SEC filing and serves as a recap of the key financial activities disclosed in the report.

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.

Veritone Company Profile

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.