Sinch acquires Pathwire, the leading email delivery platform, and intends to carry out a directed share issue secured by investor undertakings

Stockholm, Sweden, and San Antonio, Texas – September 30, 2021 – Sinch AB (publ), a global leader in cloud communications for mobile customer engagement, today announced that it has entered into a definitive agreement to acquire Pathwire, the leading cloud-based email delivery platform, including its Mailgun, Mailjet and Email on Acid products for developers and marketers. Sinch will pay the sellers a cash consideration of USD 925 million and 51 million new shares in Sinch. Using yesterday’s closing Sinch share price of SEK 165.9, and USD/SEK exchange rate of 8.8, this corresponds to an enterprise value of approximately USD 1.9 billion, or SEK 16.6 billion.

Pathwire provides a best-in-class email deliverability platform for transactional and marketing email. Built to remove the complexities of the world’s most-used digital communications channel, Pathwire ensures that the right messages are delivered to the right person at the right time. Over 100,000 businesses use Pathwire’s products to engage with their customers, including major brands such as Lyft, Kajabi, Microsoft, Iterable, and DHL.

The acquisition of Pathwire means that Sinch becomes one of the very few, global CPaaS providers that can deliver leading quality at scale across all the main digital communications channels which businesses use to engage with their customers.

“Every form of digital communications has its unique benefits, and delivering high quality at scale requires both extensive technical capabilities and deep subject matter expertise“, comments Oscar Werner, Sinch CEO. “Together with Pathwire, we will be able to offer a best-of-breed product set, across messaging, voice and email, that empowers businesses and developers to craft an unmatched, digital, customer experience.”

Businesses turn to cloud-based email service providers to avoid costly in-house solutions and to ensure that each message reaches its recipient as intended. Through its feature-rich email API, email testing tools, and accomplished deliverability services, Pathwire ensures that emails are received with minimum delay, that they are showcased in customers’ prime inbox, and that messages render pixel-perfect on every device and with every email provider. Together with a highly efficient, online go-to-market model, these product strengths have allowed Pathwire to outgrow the competition and deliver consistently high growth and high profitability.

Pathwire’s offering is centered around three core products:

  • Mailgun offers powerful APIs that let developers integrate automated email messages into products and workflows. With unmatched deliverability rates, Mailgun is the preferred choice for developers looking to send, receive and track emails using a cloud-native, scalable infrastructure.
  • Mailjet offers a drag-and-drop email builder and suite of APIs that empower marketers to increase customer engagement and maximize marketing ROI. Its powerful tools cater for the entire life cycle of an email; from design and creativity to testing, deliverability, and analytics.
  • Email on Acid further improves deliverability rates, through an automated pre-deployment checklist, and ensures that every email message renders well across different email providers and devices.

“Sinch and Pathwire are a natural fit: both companies have built their businesses around product excellence, a commitment to positive results for our customers, and a focus on clear, measurable outcomes. I’m proud of what the Pathwire team has accomplished, and I’m tremendously excited about this next step on our journey and the many opportunities we can unlock together”, comments Will Conway, Pathwire CEO.

“We are proud of what we accomplished with Will and the Pathwire team over the past few years, investing in product initiatives, leadership, and M&A, including the acquisitions of Mailjet and Email on Acid,” said Hudson Smith, a Partner at Thoma Bravo. “Sinch is the perfect strategic partner to support Pathwire and continue to build on its market-leading position as the email communications partner of choice for developers and marketers.”

Research by Technavio estimates that the worldwide market for email delivery is worth USD 16 billion. More than 60 percent of this amount relates to transactional email, which are delivered in response to an action by an end user, such as booking confirmations, receipts and password resets.

Financials

In the twelve months ending December 31, 2021, Pathwire is expected to record revenues of USD 132 million, Gross Profit of USD 104 million, and Adjusted EBITDA of USD 55 million. This corresponds to a gross margin of 79 percent and an adjusted EBITDA margin of 42 percent. The business employs around 290 people and is headquartered in San Antonio, Texas.

Organic revenue growth over the past years has consistently exceeded 30 percent per year with a gross margin close to 80 percent and an Adjusted EBITDA margin above 35 percent. The transaction is growth and margin accretive to Sinch.

The transaction is expected to generate significant revenue synergies from the cross-selling of Sinch and Pathwire products to each other’s customer base. Upon closing of the transaction, Pathwire will also be able to leverage Sinch’s established sales presence in 47 international markets to drive further growth with net new enterprise customers. One-off integration costs are estimated to reach around SEK 75 million over 18 months.

Financing

Pathwire will be acquired through a merger between a subsidiary of Sinch, Pegasus Corp One, which is registered in Delaware.

The acquisition will be financed through a combination of cash, equity and debt facilities. Upon closing, Sinch will pay the sellers, which include funds managed by Thoma Bravo and Turn/River Capital, a cash consideration of USD 925 million. The sellers will also receive 51 million new shares in Sinch, which will be delivered to the sellers not earlier than February and May 2022. Using yesterday’s closing Sinch share price of SEK 165.9, and USD/SEK exchange rate of 8.8, this corresponds to an enterprise value of approximately USD 1.9 billion, or SEK 16.6 billion.

Sinch intends to call for an extraordinary general meeting to authorize the board of directors to resolve on the issue of the consideration shares for the Pathwire acquisition. Shareholders representing in excess of 48 percent of the total number of shares and votes in Sinch have undertaken to vote in favor of such authorization. The notice for the extraordinary general meeting will be published separately.

Sinch further intends to resolve on a directed share issue of approximately 40 million shares, equivalent to approximately USD 750 million. Canada Pension Plan Investment Board (“CPP Investments”), Temasek, SeaTown Master Fund (“SeaTown”), and SB Northstar LP, a fund managed by SB Management, a wholly owned direct subsidiary of SoftBank Group Corp, alongside certain existing shareholders, have undertaken to subscribe for shares in the directed share issue, which is expected to be settled and paid for with one part in October and one part in December 2021. The details of the directed share issue will be published separately.

Sinch has a financial target to maintain net debt/adjusted EBITDA below 3.5x over time. In anticipation of upcoming transactions, Sinch had a net cash position of SEK 11.2 billion at the end of Q2 2021. This corresponds to a net debt/adjusted EBITDA-ratio of -9.6x. Several previously announced transactions are expected to affect this ratio ahead:

  • On 17 February, Sinch announced the acquisition of Inteliquent for a total cash consideration of USD 1,140 million. The transaction is expected to close in H2 2021.
  • On 9 June, Sinch announced the acquisition of MessageMedia. Sinch will pay a total enterprise value of USD 1.3 billion, with a total cash consideration of USD 1.1 billion and 11 284 870 new shares in Sinch. The transaction is expected to close in H2 2021.
  • On 22 September, Sinch announced the acquisition of MessengerPeople. Sinch will pay a total enterprise value of EUR 48 million, with a total cash consideration of EUR 33.6 million and EUR 14.4 million paid in the form of new shares in Sinch. The transaction is expected to close in Q4 2021.

On a pro forma basis, as if the acquisitions of Inteliquent, MessageMedia, MessengerPeople and Pathwire had been completed already at this point, and the directed share issue of approximately 40 million shares referenced above had already been completed, Net debt/Adjusted EBITDA would have been approximately 2.7x. This calculation of pro forma Net debt/Adjusted EBITDA includes Adjusted EBITDA in acquired entities over the past 12 months. Cash generation and earnings growth is expected to reduce this ratio going forward.

When the acquisitions of MessageMedia, MessengerPeople and Pathwire have closed, and the directed share issue referenced above is completed, the number of outstanding shares in Sinch will increase by 130.2 million. All else equal, this implies that the number of shares in Sinch rises to 830.1 million, which is an increase of around 14 percent.

Financial impact of recent transactions

In Q2 2021, Sinch reported revenues for the last 12 months of SEK 11,809 million, Gross profit of SEK 2,966 million, and Adjusted EBITDA of SEK 1,165 million. This corresponds to a gross margin of 25 percent and an Adjusted EBITDA margin of 10 percent.

Pro forma financials include 12 months of earnings from all entities that have been acquired during the past year, as well as from Inteliquent, MessageMedia, MessengerPeople and Pathwire (which have been announced but not yet closed). On this pro forma basis, Sinch’s revenues for the last 12 months, as of Q2 2021, would have been approximately SEK 20.4 billion. Gross profit would have been approximately SEK 7.2 billion and Adjusted EBITDA approximately SEK 3.2 billion. This corresponds to a gross margin of 35 percent and an Adjusted EBITDA margin of 16 percent.

Regulatory approval

Closing of the transaction is subject to customary closing conditions, including merger-control filing to the Federal Trade Commission and the Department of Justice in the US.

Timeline

The transaction is expected to close by the end of 2021.

Advisors

Moelis & Company UK LLP is acting as financial advisor to Sinch in the transaction, with K&L Gates LLP acting as legal advisor. Morgan Stanley & Co. LLC is acting as financial advisor to Pathwire, with Goodwin Procter LLP acting as legal advisor.

Webcast

A conference call for analysts and investors will take place today, September 30, at 14.00 CEST. The live webcast will be available at investors.sinch.com/webcast, where it will also be possible to ask questions. To participate by phone, please dial in a few minutes before the call to ensure that you are connected.

Sweden:           +46 8 506 92 169
UK:                  +44 203 009 5709
US:                  +1 646 787 1226

Access code:     49 81 171#

Presentation materials will be made available at https://investors.sinch.com.

For further information, please contact

Thomas Heath
Chief Strategy Officer & Head of Investor Relations
Mobile: +46 722 45 50 55
E-mail: investors@sinch.com

Ola Elmeland
Investor Relations Director
Mobile: +46 721 43 34 59
E-mail: investors@sinch.com

About Sinch

Sinch brings businesses and people closer with tools enabling personal engagement. Its leading cloud communications platform lets businesses reach every mobile phone on the planet, in seconds or less, through mobile messaging, voice and video. Sinch is a trusted software provider to mobile operators, and its platform powers business-critical communications for many of the world’s largest companies. Sinch has been profitable and fast-growing since its foundation in 2008. It is headquartered in Stockholm, Sweden, and has local presence in more than 40 countries. Shares are traded at NASDAQ Stockholm: XSTO:SINCH. Visit us at sinch.com.

About Pathwire

Pathwire offers email API technology and intuitive email marketing solutions that empowers companies around the world to solve complex communication problems. Through its Mailgun, Mailjet, and Email on Acid brands, Pathwire delivers over 250 billion emails a year for companies like DHL, Wikipedia, Toast, Lyft, and Microsoft. It provides reliable, cloud-native infrastructure, local expertise, and smart solutions based on machine learning so companies can more easily reach their customers and build connected experiences. Pathwire has employees worldwide including in the UK, Spain, France, Germany, and the US, with a headquarters in San Antonio, Texas. For more information, visit pathwire.com.

About Thoma Bravo

Thoma Bravo is one of the largest private equity firms in the world, with more than $83 billion in assets under management as of June 30, 2021. The firm invests in growth-oriented, innovative companies operating in the software and technology sectors. Leveraging the firm’s deep sector expertise and proven strategic and operational capabilities, Thoma Bravo collaborates with its portfolio companies to implement operating best practices, drive growth initiatives and make accretive acquisitions intended to accelerate revenue and earnings. Over the past 20 years, the firm has acquired more than 325 companies representing over $100 billion in enterprise value. The firm has offices in Chicago, Miami and San Francisco. For more information, visit thomabravo.com.

This information is information that Sinch AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the contact person set out above, at 08:30 CEST on September 30, 2021.

Important information

This press release may contain certain forward-looking statements. Such statements are all statements that do not relate to historical facts and include expressions such as “believe”, “estimate”, “anticipate”, “expect”, “assume”, “predict”, “intend”, “may”, “presuppose”, “should” or similar. The forward-looking statements in this release are based on various estimates and assumptions that in several cases are based on additional assumptions. Although Sinch believes these assumptions were reasonable when made, such forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that are difficult or impossible to predict and that are beyond Sinch’s control. Such risks, uncertainties and important factors could cause the actual results to differ materially from the results expressly or implicitly indicated in this communication through the forward-looking statements. The information, perceptions and the forward-looking statements in this release apply only as of the date of this release and may change without notice.

This press release is not and does not form a part of any offer for sale of securities. Copies of this communication may not be made in, and may not be distributed or sent into, the United States, Australia, Canada, Japan, South Africa, New Zealand, Hong Kong, Singapore or any other jurisdiction in which distribution of this press release would be unlawful or would require registration or other measures. The distribution of this announcement in other jurisdictions may be restricted by law and persons into whose possession this announcement comes should inform themselves about, and observe, any such restrictions.

The securities referred to in this announcement have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or under the securities laws of any state or other jurisdiction of the United States and, accordingly, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with applicable state securities law. Sinch does not intend to register any part of the directed new share issue in the United States or to conduct a public offering of shares in the United States.

The securities referred to herein have not been and will not be registered under the applicable securities laws of Canada, Japan, Australia, South Africa, New Zealand, Hong Kong or Singapore and, subject to certain exemptions, may not be offered or sold in or into or for the account or benefit of any person having a registered address in, or located or resident in, Canada, Japan, Australia, South Africa, New Zealand, Hong Kong or Singapore. There will be no public offering of the securities described herein in Canada, Japan, Australia, South Africa, New Zealand, Hong Kong or Singapore.

This press release is not a prospectus for purposes of Prospectus Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 and its delegated and implemented regulations (the “Prospectus Regulation”) and has not been approved by any regulatory authority in any jurisdiction. Sinch has not authorized any offer to the public of securities in any EEA Member State and no prospectus has been or will be prepared in connection with the directed new share issue. In any EEA Member State, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Regulation.

In the United Kingdom, this document and any other materials in relation to the securities described herein is only being distributed to, and is only directed at, and any investment or investment activity to which this document relates is available only to, and will be engaged in only with, “qualified investors” (within the meaning of the United Kingdom version of the EU Prospectus Regulation (2017/1129/ EU) which is part of United Kingdom law by virtue of the European Union (Withdrawal) Act 2018) who are (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). In the United Kingdom, any investment or investment activity to which this communication relates is available only to, and will be engaged in only with, relevant persons. Persons who are not relevant persons should not take any action on the basis of this press release and should not act or rely on it.

Neither Sinch nor any its affiliates directors, officers, employees, agents, affiliates or advisers is under any obligation to update, complete, revise or keep current the information contained in this press release to which it relates or to provide the recipient with access to any additional information that may arise in connection with it.

Every care has been taken into consideration when translating this press release into English. In the event of differences between the English version and the Swedish original, the Swedish version shall apply.

Attachment

Cobwebs Technologies Named ‘Threat Intelligence Platform of the Year’ in 2021 CyberSecurity Breakthrough Awards Program

Prestigious International Awards Program Recognizes Outstanding Information Security Products and Companies

CyberSecurity Breakthrough Award – Cobwebs Technologies

CyberSecurity Breakthrough Award – Cobwebs Technologies

NEW YORK, Sept. 30, 2021 (GLOBE NEWSWIRE) — Cobwebs Technologies, an industry-leading provider of AI-driven automated digital risk protection platform, today announced that it has been named the winner of the “Threat Intelligence Platform of the Year” award in the fifth annual CyberSecurity Breakthrough Awards program conducted by CyberSecurity Breakthrough, a leading independent market intelligence organization that recognizes the top companies, technologies, and products in the global information security market today.

Cobwebs’ threat intelligence platform automatically extracts critical insights from big data with advanced and powerful AI machine learning algorithms. Cobwebs’ platform assists analysts in identifying threat actors while uncovering connections and groups across the web using automated advanced search capabilities.

The Cobwebs platform empowers users to gain deep insights and substantial intelligence, including locations, context, internal relations, group structures, hierarchies, and more. Cobwebs’ non-intrusive methods for expedited results and efficacy reveal threat actors and collect real-time intelligence.

“We are incredibly proud to receive this recognition from CyberSecurity Breakthrough. Our platform is delivering an unprecedented level of threat intelligence, reducing uncertainty for our customers, while also aiding them in identifying potential future threats and opportunities,” said Udi Levy, CEO, and co-founder at Cobwebs Technologies. “Cobwebs is committed to our valued customers and we remain focused on delivering the next-generation digital risk protection solutions by continuously investing in our capabilities and people.”

The mission of the CyberSecurity Breakthrough Awards is to honor excellence and recognize the innovation, hard work, and success in a range of information security categories, including Cloud Security, Threat Detection, Risk Management, Fraud Prevention, Mobile Security, Email Security, and many more. This year’s program attracted more than 4,000 nominations from over 20 different countries throughout the world.

“Today’s current threat landscape is best served by threat intelligence that offers a strategic perspective,” said James Johnson, managing director, CyberSecurity Breakthrough. “There’s an advantage to identifying the types of threats a company is most likely to encounter. Gathering and analyzing data, mainly from web-based sources, provides a greater understanding of the current threat environment as well any future risks. Cobwebs’ breakthrough solution helps organizations maintain continuity in an unpredictable and volatile environment and we are thrilled to recognize the Company for winning the ‘Threat Intelligence Platform of the Year’ award.”

About Cobwebs Technologies

Cobwebs Technologies is an industry-leading AI-driven, automated Threat Intelligence platform. The Cobwebs platform provides real-time valuable and actionable insights that enable organizations to detect and expose unknown threats and threat actors to prevent criminal activity while maintaining business continuity and viability. Cobwebs’ Threat Intelligence solution combined with human expertise produces superior security intelligence that disrupts adversaries.

About CyberSecurity Breakthrough

Part of Tech Breakthrough, a leading market intelligence and recognition platform for global technology innovation and leadership, the CyberSecurity Breakthrough Awards program is devoted to honoring excellence in information security and cybersecurity technology companies, products, and people. The CyberSecurity Breakthrough Awards provide a platform for public recognition around the achievements of breakthrough information security companies and products in categories including Cloud Security, Threat Detection, Risk Management, Fraud Prevention, Mobile Security, Web, and Email Security, UTM, Firewall and more. For more information visit CyberSecurityBreakthrough.com.

For further information, please contact us @: info@cobwebs.com

Related Images

Image 1: CyberSecurity Breakthrough Award – Cobwebs Technologies

This content was issued through the press release distribution service at Newswire.com.

Attachment

First Feature Film NFT Drops from VUELE™ Grossing Nearly Six Figures In Four-Day Auction with Academy Award®-Winner Anthony Hopkins Thriller ZERO CONTACT

New Model Validates Hollywood’s Newest Revenue Stream via Blockchain Distribution

BEVERLY HILLS, Calif., Sept. 29, 2021 (GLOBE NEWSWIRE) — In a groundbreaking venture, global NFT distribution and viewing platform VUELE grossed nearly six figures bringing in 32.86267 ETH ($93,435) with the release of eleven total NFT drops of feature film thriller ZERO CONTACT starring Oscar-winning Best Actor Anthony Hopkins. The “Platinum Edition” NFT alone sold for 20 ETH ($56,860).

As the first feature film NFTs distributed by VUELE, the ZERO CONTACT NFT drops mark an incredible new step for the feature film distribution industry as well as film collecting and fan engagement.

“In just these few short days, we’ve seen a community form around our film, enhanced fan engagement, and also proved a new revenue stream in the industry. We think this is ground-breaking,” said Rick Dugdale, Co-Founder of VUELE and Director/Producer of ZERO CONTACT. “Our goal was to earn the respect of the NFT space in order for us to create staying power and help blaze a new path for filmmakers. Not only is this now a proven distribution model, but we will be able to create new film financing structures moving forward.”

Each winning NFT allows for the lucky winner to be edited into the film with a personal Zero Contact shoot and edit. In addition, each winner receives signed digital artwork of the film poster, the “making of” the film, Crypto Generative Art by REMO x Dcsan and a VUELE “Golden Ticket.” The “Platinum” 1 of 1 winner also receives a walk-on role in the Zero Contact Universe.

About VUELE
VUELE [pronounced VIEW-lee] is the first direct-to-consumer, full-length feature film viewing and distribution platform delivering feature films and digital collectible entertainment content as NFTs. Users will be able to become owners of exclusive, limited edition film, and collector NFT content which they can watch, collect, sell, and trade on the vuele.io platform. VUELE provides movie fans and collectors alike with the ultimate consumer-focused digital collection and viewing platform. VUELE is a joint venture between Enderby Entertainment and CurrencyWorks Inc. For more, visit: www.vuele.io

Media Contact
media@vuele.io

B2B Lead Generation Company bant.io Now Accepts Cryptocurrency to Serve a Vibrant Startup Economy

bant.io has become the first B2B lead generation organization to deal in cryptocurrency.

bant.io dashboard

bant.io dashboard

LONDON, Sept. 29, 2021 (GLOBE NEWSWIRE) — bant.io, the all-in-one B2B lead generation and sales acceleration service, is pushing at the boundaries of conventional business practice.

The B2B lead generation agency will now accept cryptocurrency as payment for its services from late September 2021.

With a clear focus on driving growth in companies that want to sell more and sell faster, bant.io delivers by automating customer acquisition with data-driven experiments and a scientific lead generation method that gains B2B customers for their clients.

The inclusion of cryptocurrency means that bant.io will naturally be more flexible and responsive when helping marketing agencies, SaaS, and technology companies identify and automatically engage with their ideal customers, using proven cross-channel lead generation strategies.

“Over the last five years, we’ve innovated B2B lead generation while offering one of the most flexible payment plans in the industry. Now, by accepting cryptocurrency in addition to the fiat currencies, we intend to provide our customers with an even more flexible and seamless payment flow, which will also address the growing needs of the industry,” said Founder Andrei Breaz.

bant.io empowers brands and companies to drive high-converting sales conversations through unique strategies by leveraging their AI-powered lead generation solution, including email, social outreach, managed PPC, retargeting, and a powerful sales chatbot.

These unique strategies have served over 2,000+ companies globally, but the pandemic triggered a surge in entrepreneurship, fuelling a startup boom, resulting in higher demand for bant.io‘s services and lead guarantee model.

“The global startup ecosystem is evolving and shifting, with more startups created and more investments made. bant.io has strived to remain nimble and stay ahead of changes and trends, which is why we have revitalized our payment processes in preparation for this rapidly growing startup economy,” said COO Jaclyn Curtis.

bant.io leverages the top 3 percent high-performing messages with data from 12,000+ high-converting campaigns to create qualified dialogue-driven sales opportunities.

bant.io‘s proprietary algorithm uses natural language processing (NLP) and optimizes PPC ads for conversions to generate more qualified traffic to the website. The algorithm also uses a customized retargeting solution that can accurately track B2B bounced traffic and other relevant decision-makers from the same company across different channels and devices and help convert it into new leads & sales. Its powerful, code-free, rule-based logic sales chatbot module allows businesses to create an automated digital assistant that extends their sales teams.

With a white-label service, bant.io handles the entire rebranding set up for their clients within 48 hours after signup, along with hosting and maintenance. Clients can create their pricing and set their margins.

bant.io helps growing companies who want to sell more and sell quicker, automating customer acquisition with data-driven experiments and making failure impossible. For more information about the scientific lead generation method to gain B2B customers, visit https://bant.io.

Media Relations:

Stephen Cotter
pr@bant.io
Download our Media Kit

+44 (0) 203 0954 931 (London)
+1 (347) 923-6900 (New York)

Related Images

Image 1: bant.io dashboard

A Screenshot from the bant.io B2B Lead Generation Dashboard.

This content was issued through the press release distribution service at Newswire.com.

Attachment

Delphix Data Control Tower Achieves SOC 2 Type 1 Compliance

Report Validates Security Protocols of Delphix’s Masking, Compliance, and SaaS Capabilities

REDWOOD CITY, Calif., Sept. 29, 2021 (GLOBE NEWSWIRE) — Delphix, the industry leading data company for DevOps, today announced that it has successfully completed a Type 1 System and Organization Controls (SOC) 2 examination for the Delphix Data Control Tower (DCT). The examination, conducted by Schellman & Company, LLC (Schellman), found that Delphix has suitably designed controls to meet the SOC 2 criteria for the Security, Availability and Confidentiality Trust Services Categories as of July 31, 2021.

“With the growing threat of ransomware, data security and trust are non-negotiable in today’s business environment,” said Douglas Barbin, Managing Principal at Schellman. “The Type 1 SOC 2 examination demonstrates Delphix’s commitments to its customers and their security and compliance initiatives.”

SOC 2 reports are attestation reports that opine on controls at an organization relevant to the security, availability, and confidentiality of the system or services. Type 1 reports attest to the design and implementation of an organization’s controls as of a review date.

The Delphix Data Control Tower provides a single API endpoint enabling teams to automate a range of complex, critical data operations, including centrally managing enterprise application data with a SaaS interface, rapidly delivering test data through APIs, and finding and masking sensitive data for compliant test environments to safely automate CI/CD pipelines. The company has built a robust control framework to meet the security, availability, and confidentiality commitments made to customers.

“The increase in cyber attacks has made security top of mind. This attestation further confirms the robustness and compliance of our security protocols,” said Pritesh Parekh, Chief Trust & Security Officer, VP of Engineering at Delphix. “As more and more enterprises become data companies, we are committed to providing them the best and most secure data solutions for DevOps.”

Earlier this year, the company announced that the Delphix DevOps Data Platform had achieved SAP certified integration with SAP NetWeaver® and SAP S/4HANA®. It also released new data compliance capabilities that help Salesforce customers unlock the strategic value of Salesforce® data while maintaining data privacy compliance.

About Delphix
Delphix is the industry leading data company for DevOps.

Data is critical for testing application releases, modernization, cloud adoption, and AI/ML programs. We provide an automated DevOps data platform for all enterprise applications. Delphix masks data for privacy compliance, secures data from ransomware, and delivers efficient, virtualized data for CI/CD.

Our platform includes essential DevOps APIs for data provisioning, refresh, rewind, integration, and version control. Leading companies, including UKG, Choice Hotels, J.B.Hunt, and Fannie Mae, use Delphix to accelerate digital transformation. For more information, visit www.delphix.com or follow us on LinkedIn, Twitter, and Facebook.

For more information, contact:
Aarthi Rayapura
Director, Editorial & Content
aarthi.rayapura@delphix.com


AGF Management Limited Reports Third Quarter 2021 Financial Results

TORONTO, Sept. 29, 2021 (GLOBE NEWSWIRE) —

  • Reported diluted earnings per share of $0.21
  • Mutual fund gross sales of $790 million for the third quarter of 2021, an improvement of 61% year-over-year
  • Mutual fund net sales of $288 million for the quarter
  • Total assets under management and fee-earning assets1 of $43.4 billion

AGF Management Limited (AGF or the Company) (TSX: AGF.B) today announced financial results for the third quarter ended August 31, 2021.

AGF reported total assets under management and fee-earning assets1 of $43.4 billion compared to $36.5 billion as at August 31, 2020.

“As we head into the final months of 2021, we are well-positioned to execute against our strategic priorities and will aim to continue to gain momentum with a focus on increasing sales, evolving our client-base and looking for opportunities to diversify our business,” said Kevin McCreadie, Chief Executive Officer and Chief Investment Officer, AGF.

“Despite the challenges of the pandemic, this year we have made strides expanding into the private alternatives space and are seeing the results of growing interest into our fee-based series and separately managed accounts,” added McCreadie.

AGF’s mutual funds net sales improved $310 million year-over-year, with total net sales of $288 million in Q3 2021, compared to net redemptions of $22 million in Q3 2020. Excluding net flows from institutional clients invested in mutual funds, retail mutual fund net sales were $288 million for the quarter compared to net redemptions of $4 million in the comparative period of 2020. AGF mutual fund gross sales for the quarter totaled $790 million, a 61% improvement over prior year.

Mutual fund sales momentum continued into September with AGF reporting mutual fund net sales of $80 million as at September 24, 2021 compared to net redemptions of $11 million for the same time last year. Mutual fund gross sales were up 51% year-over-year.

“Delivering on our strategic growth strategy, this quarter we deployed capital and diversified partnerships within our private alternatives business,” said Adrian Basaraba, Senior Vice-President and Chief Financial Officer. “The opportunities within this space have allowed us to realize value for our shareholders and grow our assets and revenue streams.”

“We are targeting continued growth while keeping expense management top of mind with the goal of improving margins,” added Basaraba.

Key Business Highlights:

  • AGF in partnership with the SAF Group (SAF) announced the launch of AGF SAF Private Credit Limited Partnership and AGF SAF Private Credit Trust. The new offerings provide both institutional and retail investors access to the benefit of private credit investing.
  • AGF announced an evolution of its strategic partnership with SAF. The partnership is focused on providing investors access to unique private alternative opportunities leveraging AGF’s operations and distribution reach coupled with SAF’s private credit investment management expertise. AGF and SAF have agreed to a definitive agreement along with a distribution arrangement as an alternative to AGF exercising its option to acquire management contracts of select SAF funds.
  • In June 2021, one of AGF’s long-term private alternative investments, SAF Jackson Management LP (SAFJM LP), was fully monetized, with a final cash distribution of $5.9 million received. As part of this transaction, AGF through its joint venture ownership interest in the manager received $2.4 million of carried interest.
  • AGF announced a strategic private equity partnership with First Ascent Ventures (First Ascent) focused on investing in emerging technology companies that are building the next generation of disruptive, fast growing enterprise B2B software companies. AGF has made a $30 million cornerstone investor commitment to First Ascent’s second fund and is a member of the Limited Partner Advisory Committee of the fund.
  • AGF International Advisors Company Limited has been accepted as a signatory to the UK Stewardship Code, recognized globally as a best-practice benchmark in investment stewardship.
  • Building on its commitment to diversity and inclusion, AGF announced a multi-year partnership for the creation of the AGF Scholarship Fund for Indigenous students with Indspire, a national Indigenous organization that invests in the education of Indigenous people, enabling their success through financial awards, resources and role models.
  • Judy Goldring, AGF’s President and Head of Global Distribution, was elected Vice-Chair of The Investment Funds Institute of Canada (IFIC)’s Board of Directors. She will serve a two-year term supporting IFIC’s commitment to further strengthen the integrity of Canada’s investment funds industry and foster a strong, stable investment sector for the benefit of investors and the association’s Members.

For further information on AGF’s pandemic response plan statement visit AGF.com.


Financial Highlights:

“When it comes to expense management, we continue to take a thoughtful approach that has allowed our core expenses and operations to remain relatively consistent as we continue to see an increase in success-based expenses,” added Basaraba.

  • Management, advisory, administration fees and deferred sales charges were $112.4 million for the three months ended August 31, 2021, compared to $94.9 million in 2020. The increase in revenue is attributable to higher net sales, increase in AUM and higher average revenue rate as a result of product mix.
  • The continued increase in mutual fund sales in the third quarter along with increased corporate development activity drove higher selling, general and administrative costs in the period. Selling, general and administrative costs were $50.1 million for the three months ended August 31, 2021, compared to $46.1 million in 2020. This increase in variable costs was partially offset by management’s continued focus on cost control.
  • EBITDA before commissions for the three months ended August 31, 2021 was $37.5 million, compared to $62.6 million in the prior year comparative period. Excluding reported earnings from S&WHL, adjusted EBITDA before commissions for the three months ended August 31, 2021 was $37.5 million, compared to $21.3 million in the prior year comparative period.
  • DSC commissions for the three months ended August 31, 2021 were $14.1 million, compared to $8.9 million in the prior year comparative period.
  • Net income for the three months ended August 31, 2021 was $14.9 million ($0.21 diluted EPS), compared to $47.3 million ($0.60 diluted EPS) in the prior year comparative period. Adjusted net income for the three months ended August 31, 2021 was $14.9 million ($0.21 adjusted diluted EPS), compared to $14.8 million ($0.19 adjusted diluted EPS) in the prior year comparative period. Excluding reported earnings from S&WHL, adjusted diluted earnings per share was $0.08 in the comparative prior year period. The increase is primarily due to the growth in mutual fund sales as well as the income generated from AGF’s interest in private alternative managers and long-term investments.
Three months ended Nine months ended
  August 31,     May 31,     August 31,     August 31,     August 31,  
(in millions of Canadian dollars, except per share data)   2021     2021     20201     2021     20201  
Income
Management, advisory, administration fees
and deferred sales charges $ 112.4 $ 108.6 $ 94.9 $ 323.9 $ 283.2
Share of profit of joint ventures 2.2 0.1 0.6 3.1 1.3
Other income from fee-earning arrangements 0.7 0.4  – 1.1  –
Dividend income (S&WHL)  –  – 41.3  – 45.8
Fair value adjustments and other income 7.8 0.4 1.9 11.7 4.3
Total Income $ 123.1 $ 109.5 $ 138.7 $ 339.8 $ 334.6
Selling, general and administrative 50.1 47.1 46.1 145.2 131.6
Deferred selling commissions 14.1 17.7 8.9 47.4 31.7
EBITDA before commissions2 37.5 28.2 62.6 92.2 114.1
Adjusted EBITDA before commissions2 37.5 28.2 30.1 92.2 81.6
EBITDA 23.4 10.5 53.7 44.8 82.4
Net income 14.9 5.0 47.3 25.5 63.5
Adjusted net income2 14.9 5.0 14.8 25.5 31.0
Diluted earnings per share 0.21 0.07 0.60 0.35 0.80
Adjusted diluted earnings per share2 0.21 0.07 0.19 0.35 0.39
Free cash flow2 21.5 10.4 15.5 42.4 36.1
Dividends per share 0.09 0.08 0.08 0.25 0.24
Long-term debt  –  – 194.3  – 194.3
(end of period) Three months ended
  August 31,     May 31,     February 28,     November 30,     August 31,  
(in millions of Canadian dollars)   2021     2021     2021     2020     2020  
Mutual fund assets under management (AUM)3 $ 23,792 $ 22,290 $ 21,394 $ 20,322 $ 19,232
Institutional, sub-advisory and ETF accounts AUM 10,302 9,713 9,403 9,638 9,252
Private client AUM 7,073 6,689 6,300 6,043 5,773
Private alternatives AUM4,5 99 134 142 227 178
Total AUM4 $ 41,266 $ 38,826 $ 37,239 $ 36,230 $ 34,435
Private alternatives fee-earning assets4,5 2,094 1,983 2,012 2,038 2,029
Total AUM and fee-earning assets5 $ 43,360 $ 40,809 $ 39,251 $ 38,268 $ 36,464
Net mutual fund sales (redemptions)3 288 408 385 88 (22)
Average daily mutual fund AUM3 23,104 22,011 21,118 19,487 18,879

1 Refer to Note 3 in the 2020 Consolidated Financial Statements for more information on the adoption of IFRS 16.
2 EBITDA before commissions (earnings before interest, taxes, depreciation, amortization and deferred selling commissions), and Free Cash Flow are not standardized measures prescribed by IFRS. The Company utilizes non-IFRS measures to assess our overall performance and facilitate a comparison of quarterly and full-year results from period to period. They allow us to assess our investment management business without the impact of non-operational items. These non-IFRS measures may not be comparable with similar measures presented by other companies. These non-IFRS measures and reconciliations to IFRS, where necessary, are included in the Management’s Discussion and Analysis available at www.agf.com.
3 Mutual fund AUM includes retail AUM, pooled fund AUM and institutional client AUM invested in customized series offered within mutual funds.
4 Total AUM and Private alternatives AUM have been reclassified and restated to exclude co-investment AUM for comparative purposes.

5 Fee-earning assets represents assets in which AGF has carried interest ownership and earns recurring fees but does not have ownership interest in the managers.

For further information and detailed financial statements for the third quarter ended August 31, 2021, including Management’s Discussion and Analysis, which contains discussions of non-IFRS measures, please refer to AGF’s website at www.agf.com under ‘About AGF’ and ‘Investor Relations’ and at www.sedar.com.

Conference Call

AGF will host a conference call to review its earnings results today at 11 a.m. ET.

The live audio webcast with supporting materials will be available in the Investor Relations section of AGF’s website at www.agf.com or at https://edge.media-server.com/mmc/p/357jk6jw. Alternatively, the call can be accessed toll-free in North America by dialing 1 (800) 708-4540 (Passcode #: 50216247).

A complete archive of this discussion along with supporting materials will be available at the same webcast address within 24 hours of the end of the conference call.

About AGF Management Limited

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.

AGF has investment operations and client servicing teams on the ground in North America, Europe and Asia. With over $43 billion in total assets under management and fee-earning assets, AGF serves more than 700,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.

AGF Management Limited shareholders, analysts and media, please contact:

Adrian Basaraba
Senior Vice-President and Chief Financial Officer
416-865-4203, InvestorRelations@agf.com

Courtney Learmont
Vice-President, Finance
647-253-6804, InvestorRelations@agf.com

Caution Regarding Forward-Looking Statements

This press release includes forward-looking statements about the Company, including its business operations, strategy and expected financial performance and condition. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as ‘expects,’ ‘estimates,’ ‘anticipates,’ ‘intends,’ ‘plans,’ ‘believes’ or negative versions thereof and similar expressions, or future or conditional verbs such as ‘may,’ ‘will,’ ‘should,’ ‘would’ and ‘could.’ In addition, any statement that may be made concerning future financial performance (including income, revenues, earnings or growth rates), ongoing business strategies or prospects, fund performance, and possible future action on our part, is also a forward-looking statement. Forward-looking statements are based on certain factors and assumptions, including expected growth, results of operations, business prospects, business performance and opportunities. While we consider these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about our operations, economic factors and the financial services industry generally. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements made by us due to, but not limited to, important risk factors such as level of assets under our management, volume of sales and redemptions of our investment products, performance of our investment funds and of our investment managers and advisors, client-driven asset allocation decisions, pipeline, competitive fee levels for investment management products and administration, and competitive dealer compensation levels and cost efficiency in our investment management operations, as well as general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, taxation, changes in government regulations, unexpected judicial or regulatory proceedings, technological changes, cybersecurity, the possible effects of war or terrorist activities, outbreaks of disease or illness that affect local, national or international economies (such as COVID-19), natural disasters and disruptions to public infrastructure, such as transportation, communications, power or water supply or other catastrophic events, and our ability to complete strategic transactions and integrate acquisitions, and attract and retain key personnel. We caution that the foregoing list is not exhaustive. The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements. Other than specifically required by applicable laws, we are under no obligation (and expressly disclaim any such obligation) to update or alter the forward-looking statements, whether as a result of new information, future events or otherwise. For a more complete discussion of the risk factors that may impact actual results, please refer to the ‘Risk Factors and Management of Risk’ section of the 2020 Annual MD&A.


1 Fee-earning assets represents assets in which AGF has carried interest ownership and earns recurring fees but does not have ownership interest in the managers.