US digital accessibility solutions company Level Access has signed a definitive agreement to acquire Israeli digital accessibility AI technology company UserWay (TASE: UWAY). The acquisition comes less than two years since the company held its IPO on the Tel Aviv Stock Exchange (TASE).
Level Access will pay $98.7 million for UserWay opened trading this morning at a market cap of NIS 272 million. The company's share price is down 4.88% in early afternoon trading. The two companies will merge with Level Access paying cash for UserWay's shares. UserWay's share price has risen 152% in 2023, boosted by the interest in AI technologies. In contrast to many other tech companies which went public between 2020 and 2022, UserWay has been a success story and a positive end to a gloomy years on the TASE.
UserWay's biggest shareholder is founder and CEO Allon Mason with a 38.5% stake worth NIS 105 million while Yael Har-Even is chairwoman.
Mason said, "We’ve long admired the Level Access team and their integration of technology, service, and subject matter expertise. This transaction delivers compelling value to our shareholders and provides our team with a great opportunity to bring our technologies to a broader market. We are unified by a shared mission to make the world more accessible, and we believe this partnership will increase and accelerate what we are able to accomplish."
Level Access founder and CEO Tim Springer added, "Allon and the UserWay team have developed incredible automated remediation technologies that enable organizations to move faster in their digital accessibility programs. This combination, with our full-service digital accessibility platform, will enable us to bring powerful new tools to our customers and positions us with a robust solution set for organizations of any size and maturity."
UserWay reported revenue of $6.2 million in the first half of 2023, doubling revenue of $3.15 million in the corresponding period of 2022. Total revenue in 2022 was $7.7 million. Net loss in the first half of 2023 was $1.5 million, narrowing from $4.6 million in the first half of 2022.
Published by Globes, Israel business news - en.globes.co.il - on December 31, 2023.
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