Accessibility AI tech developer UserWay acquired by Level Access in $99 million deal
Accessibility AI tech developer UserWay acquired by Level Access in $99 million deal
UserWay, which is being taken private by the American company after being traded on the Tel Aviv Stock Exchange since January 2022, develops Al-powered technologies that help websites, apps, and digital documents more readily achieve compliance with accessibility regulations
Israeli company UserWay, which develops accessibility AI technologies, is being taken private by Level Access, a provider of digital accessibility solutions. The companies announced on Sunday that they have signed a definitive agreement for Level Access to acquire UserWay in an all-cash transaction for $98.7 million.
Under the terms of the merger agreement, UserWay shareholders will receive $21.06 (approximately NIS 76) per share in cash, representing a premium of 17% over the fully diluted share price as of market close on December 28th, 2023, and 22% over the company’s last thirty-day average fully diluted share price. UserWay opened trading on Sunday with a market cap of NIS 272 million (approximately $75.5 million).
UserWay, which was founded in 2016, went public on the Tel Aviv Stock Exchange in January 2022, raising approximately NIS 30 million from institutional investors. The company reported revenue of $6.2 million in the first half of 2023, almost double from the corresponding period in 2022. Net loss in the first half of 2023 was $1.5 million, down from $4.6 million in the corresponding period in 2022.
UserWay is a full-service provider of advanced digital accessibility software solutions. UserWay is used by millions of websites globally to improve accessibility and usability for people with disabilities. The company's Al-powered technologies help websites, apps, and digital documents more readily achieve compliance with accessibility regulations, such as the ADA, Section 508, AODA and the EAA, as well as internationally recognized standards such as WCAG 2.2, and EN 301 549.
Arlington-based Level Access was founded in 1997 by engineers with disabilities and provides solutions for testing web accessibility.
“We’ve long admired the Level Access team and their integration of technology, service, and subject matter expertise,” said Allon Mason, CEO and Founder of UserWay. “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 transaction is expected to close in early 2024, with UserWay CEO Mason also participating in the transaction with a direct investment in Level Access. Upon closing of the transaction, UserWay will become a privately-held company wholly owned by Level Access and the company’s shares will no longer be listed on TASE or on any public stock exchange. The business will continue to operate under the UserWay name and brand, with Allon Mason as CEO of UserWay and President of Level Access.
Nfluence Partners acted as financial advisors and Sullivan & Worcester as legal counsel to UserWay. Latham & Watkins LLP and Herzog, Fox & Neeman served as legal counsel to Level Access.
