NowVertical Group Inc. a leading data analytics and AI solutions company, announced the appointment of Sandeep Mendiratta as Chief Executive Officer of the Company. Mr. Mendiratta’s appointment is a critical step in the strategic reorganization of NowVertical designed to fast-track the integration of its global asset base and propel the company into its next phase of growth.
Mr. Mendiratta joined NowVertical in January 2023 as the former CEO of Acrotrend during the Acrotrend acquisition. He has a proven track record of scaling businesses, is a seasoned expert in the data analytics industry, and is a well-respected leader within the Company.
To support Mr. Mendiratta, the Company is also pleased to announce that Santiago Trógolo, former CEO of CoreBI, acquired by NowVertical in February 2022, will be promoted to EVP LATAM, and Mostafa Hashem, former CEO of Smartlytics, acquired by NowVertical in January 2023, will be promoted to EVP Product and Technology. Each of Mr. Mendiratta, and Mr. Hashem, have meaningful shareholdings in NowVertical and are directly aligned with other shareholders.
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Over the last three years, NowVertical’s strategic acquisitions have positioned the Company as a powerhouse in data science, advanced AI solutions, and pragmatic data consultancy. This evolution has empowered NowVertical to offer comprehensive data management services to top-tier global clients spanning diverse industries and regions.
However, over the past six months, NowVertical’s board of directors (the “Board”) determined that the Company had not maximized the expected benefit from the integration of the Company’s acquisitions, nor was it effectively positioning those business units or their respective leadership teams for success.
The Board also determined that the current course of growth, and the Company’s spending across the enterprise, was unsustainable without substantial dilution to shareholders on potentially punitive terms amid poor market conditions.
In order to preserve shareholder value and put NowVertical on a course for sustainable long-term organic and inorganic growth, the Board led several critical initiatives including:
- Empowering Business Leadership: Founders and leaders of acquired business units have assumed key leadership roles within NowVertical. These founders and leaders, distinguished experts in the data analytics space, bring not only a wealth of operational expertise but also possess long-term institutional knowledge critical for navigating the complexities of the evolving industry landscape. Integration efforts will continue to elevate key performing leaders within NowVertical.
- Aligning All Key Stakeholders: Commencing the renegotiation of commitments with key business unit stakeholders to ensure cash is paid only when available, and to create an environment where all individual stakeholders are working towards the same metrics that are relevant to the Company as a whole and not just the individual business units.
- Cost Efficiencies: Initiatives to enhance financial and operational efficiency by minimizing redundancy, fostering synergies across individual business units, and reducing corporate expenses, were accelerated in Q3. These efforts, which will continue, resulted in a substantial reduction of operating cash burn from ($3.6) million USD in Q1 2023 to just ($0.3) million USD in Q3 2023.
Non-GAAP net cash flow from operations:
| Three months ended | |||||||
| September 30, 2023 | March 31, 2023 | ||||||
| Revenue | $ | 16,512,040 | $ | 13,622,035 | |||
| Operating expenses | (16,812,245 | ) | (17,224,188 | ) | |||
| Net cash flow from operations | $ | (300,205 | ) | $ | (3,602,153 | ) | |
- Integration, Simplification and Execution: Focus on driving the integration of NowVertical’s existing business units, including across similar markets, targeting and measuring the Company’s greatest market opportunities. Deploy an easy-to-understand framework to engage with customers and prospects. Unify the Company’s global design strategy to create clarity and efficiency in NowVertical’s offering. Execute on strategic account growth opportunities. Drive engagement and profitability through long-term recurring revenue.
- Board Refreshment and Enhancement: This past week the Board was pleased to appoint Mr. David Charron, CFO of Tiny Ltd., a technology holding company with a strategy of acquiring majority stakes in businesses; and Mr. Chris Ford, President of Intelliware Development, a consulting and technology delivery organization focused on delivering business impact through technology, and the former CEO of Capco Canada, a leading business and technology professional services firm specializing in the financial services domain. Earlier this year, the Board elevated director Elaine Kunda, Founder and Managing Partner at Disruption Ventures, a leading Canadian early-stage VC firm to the position of Board chair; and welcomed Andre Garber, NowVertical’s co-founder and Chief Development Officer, to the Board. Each of these individuals brings a unique set of skills, experience, expertise, and shareholder-focused perspective to the Board.
- Appointment of New Auditor: In October 2023, the Board was pleased to appoint Ernst & Young LLP (“EY”) as the Company’s auditor. In making its selection, the audit committee of the Board, among other factors, considered the experience of audit firms’ in working with technology and M&A-led enterprises with multiple business units.
“We are very pleased to welcome Sandeep Mendiratta as NowVertical’s CEO. Sandeep has a proven track-record of scaling businesses and driving value. In addition, the elevation of other seasoned operators from our key business units, positions NowVertical to scale a business originally and solely focused on growth by acquisition. These leaders work directly with our blue-chip customers daily, and we are excited to enable our acquisitions to truly integrate by placing the most resourceful and passionate operators where they need to be, right around the leadership table. Our management team will also benefit from our enhanced and strengthened Board who will support them with their relevant expertise and experience,” said Board Chair Elaine Kunda.
“The past year has been an active one for the Board and management team, we had to make difficult but necessary decisions to preserve shareholder value and put the Company back on track for growth. On behalf of the NowVertical board of directors, I would also like to commend Sasha Grujicic for playing a key role in our achievements, we appreciate his contributions to this transformative journey, and wish him well in his next endeavor,” continued Ms. Kunda.
“I am excited about the opportunity ahead of NowVertical and thank the Board for their confidence in me. I look forward to working very closely with all of my colleagues, to translate the hard work of integration into tangible growth opportunities. I am also committed to aligning all of our key business units towards our shared success and ultimately driving value for all of our shareholders,” said Sandeep Mendiratta, CEO of NowVertical.
Mr. Grujicic, in connection with the completion of his service as CEO, has stepped down from the Board, effective as of January 12, 2024.
The co-founder of NowVertical and an owner of over 5% of the Company’s shares, Andre Garber, will retain his current role as Chief Development Officer and Board member, steering corporate functions, capital markets, and specific M&A initiatives from the Company’s corporate headquarters in Toronto, Canada.
SOURCE: GlobeNewswire