TL;DR:
- UserWay, an Israeli accessibility AI tech developer, is being acquired by Level Access, a digital accessibility solutions provider, in a $99 million all-cash transaction.
- Shareholders will receive $21.06 per share, representing a 17% premium over the market price on December 28, 2023.
- UserWay reported a revenue of $6.2 million in H1 2023, almost double compared to H1 2022.
- The acquisition is expected to close in early 2024, with UserWay CEO participating in the transaction and UserWay becoming a privately-held company under Level Access.
- Both companies share a mission to enhance global accessibility and compliance with accessibility regulations.
Main AI News:
In a strategic move that underscores the growing significance of digital accessibility, UserWay, the Israeli pioneer in accessibility AI technologies, is set to go private through an acquisition by Level Access, a renowned provider of digital accessibility solutions. The two industry leaders recently unveiled a definitive agreement, marking a pivotal moment in the accessibility tech sector.
Under the terms of this transformative merger agreement, UserWay’s shareholders are poised to receive an all-cash transaction sum of $98.7 million, equivalent to $21.06 per share (approximately NIS 76). This generous offer represents a premium of 17% over the fully diluted share price as of the market’s closure on December 28th, 2023, and an impressive 22% over the company’s last thirty-day average fully diluted share price. As a testament to UserWay’s market presence, the company kicked off trading on Sunday with a market capitalization of NIS 272 million, translating to approximately $75.5 million.
Founded in 2016, UserWay’s journey to this milestone started when it went public on the Tel Aviv Stock Exchange in January 2022, successfully raising approximately NIS 30 million from institutional investors. The company’s financial performance has been on an upward trajectory, with reported revenue of $6.2 million in the first half of 2023, nearly doubling the figures from the corresponding period in 2022. Additionally, UserWay’s net loss for the first half of 2023 stands at $1.5 million, demonstrating substantial improvement compared to the corresponding period in 2022 when it amounted to $4.6 million.
UserWay has firmly established itself as a full-service provider of cutting-edge digital accessibility software solutions. Its innovative AI-powered technologies have been embraced by millions of websites worldwide, facilitating enhanced accessibility and usability for individuals with disabilities. Notably, UserWay’s solutions have been instrumental in helping websites, apps, and digital documents achieve compliance with a range of accessibility regulations, including the ADA, Section 508, AODA, EAA, WCAG 2.2, and EN 301 549, further solidifying its pivotal role in the industry.
Level Access, headquartered in Arlington and founded in 1997 by engineers with disabilities, has been a key player in the field, specializing in providing solutions for testing web accessibility. Commenting on this significant development, Allon Mason, CEO and Founder of UserWay, expressed his admiration for the Level Access team, emphasizing the synergy in their shared mission to enhance global accessibility. He stated, “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.“
The acquisition is on track to be finalized in early 2024. In a noteworthy move, UserWay’s CEO, Allon Mason, will be actively participating in the transaction by making a direct investment in Level Access. Following the transaction’s closure, UserWay will transition into a privately-held entity, fully owned by Level Access. Consequently, the company’s shares will no longer be listed on the Tel Aviv Stock Exchange or any other public stock exchange. Nevertheless, the business will continue to operate under the esteemed UserWay name and brand, with Allon Mason at the helm as CEO of UserWay and President of Level Access.
Financial advisory support for UserWay was provided by Nfluence Partners, with Sullivan & Worcester offering legal counsel. On the other side of the transaction, Level Access enlisted the legal expertise of Latham & Watkins LLP and Herzog, Fox & Neeman.
Conclusion:
The acquisition of UserWay by Level Access reflects the increasing significance of digital accessibility in the market. This merger not only brings together two prominent players in the industry but also highlights their commitment to making technology more inclusive and compliant with accessibility regulations. As businesses prioritize accessibility, this move positions Level Access to provide comprehensive solutions to meet these growing demands.
