Weyland Tech, Inc., a leading global provider of eCommerce, mCommerce, and fintech business enablement solutions, has engaged a leading U.S. investment bank, The Benchmark Company, to assist Weyland in the exploration and evaluation of strategic alternatives for enhancing shareholder value.
These alternatives could include, among others, continuing to execute the company’s business plan, including an increased focus on certain standalone strategic initiatives, the disposition of certain assets, or a strategic business combination. It could also include a transaction that results in private ownership or a sale of the company or some combination of one or more of these possible alternatives.
“Over the past year, we’ve made great strides in terms of user growth, product development, strengthening our intellectual property portfolio and expanding our global footprint,” noted Brent Suen, CEO of Weyland Tech. “However, even before the recent impact of the coronavirus, we were challenged with the market valuation of our company being maintained at far below our peers. Following the highly successful launch of AtozGo last summer and the acquisition of the assets of Push Interactive in January, the ‘sum of the parts’ still remained much ‘greater than the whole.’”
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“As our business returns to its historic strong and steady growth in recurring revenues, we believe our current market valuation presents significant upside,” continued Suen. “This is especially so given how we currently trade at less than 1x revenue, while companies with similar businesses, albeit larger, trade at more than 20x. So, we remain focused on growing our top line, improving margins, and closing this valuation gap.
“Meanwhile, our industry has been presenting a multitude of opportunities for acquisition, consolidation, strategic partnerships, and other interesting potential transactions. In light of all of this, management and our board of directors concluded that with the assistance of Benchmark now would be an opportune time to begin a process of evaluating strategic alternatives with the ultimate goal of maximizing shareholder value.”
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More specifically for Weyland, strategic alternatives could include a sale of its AtozGo™ and AtozPay™ platforms, a business combination such as a merger with another party, or a strategic investment financing which could support the accelerated growth of its CreateApp platform-as-a-service internationally.
“Due to the fast growth of our unique AtozGo’s food and grocery delivery platform, we have already been engaged in a number of discussions which could involve a potential buyer or major investor in AtozGo,” said Djunaedy Hermawanto, CEO of Weyland Indonesia Perkasa, Weyland Tech’s subsidiary which operates AtozPay and AtozGo.
Weyland expects the strategic alternatives process to lead to at least one potential transaction within the next 90 days and a second potential transaction by year end. However, there can be no assurance this process will result in any transactions or other strategic change or outcome.
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