EMERGE Commerce Ltd., a portfolio of e-commerce brands and technologies, has signed a definitive agreement dated effective February 19, through its wholly owned subsidiary, Emerge Brands Inc., to acquire substantially all assets of Viral Loops and specified liabilities from Wishpond Technologies Ltd.
Founded in 2016, Viral Loops is a highly profitable, B2B referral marketing platform that enables businesses to design and manage subscription-based referral programs that drive word-of-mouth, increase retention, and reduce customer acquisition costs, said EMERGE, adding that Viral Loops operates an asset-light, recurring revenue model with high gross margins and strong cash flow conversion. The business serves a diversified base of global B2B customers.
For the year ended December 31, 2025, Viral Loops generated CA$1.3M in revenue, with gross margins of ~86%, and Adj. EBITDA of CA$800K (~62% Adj. EBITDA margin), based on unaudited results, explained EMERGE.
EMERGE has agreed to pay cash consideration of $2.1M on closing of the transaction, subject to certain closing adjustments, and $200,000 in deferred cash consideration at the one-year anniversary. At December 31, 2025, Viral Loops had total assets of approximately $1.2 million.
EMERGE’s subscription, marketplace, and retail businesses provide its members with access to offerings across its grocery and golf verticals. truLOCAL is its flagship Canadian meat and seafood subscription service, connecting local farmers with a health-conscious audience. Its golf vertical includes its discounted tee-times/ experiences brand, UnderPar, and its discounted golf apparel and equipment brands, JustGolfStuff and Tee 2 Green.
“Viral Loops is precisely the type of high-margin, recurring revenue business we aim to acquire — profitable, cash-flow generative, and strategically complementary to our portfolio. At ~2.9x Adj. EBITDA, we believe this transaction reflects disciplined capital allocation with compelling immediate returns. We are impressed with the lean team running the business and their tech-forward AI roadmap that we believe has the potential to both take Viral Loops to the next level, as well as super-charge the overall EMERGE portfolio,” said Ghassan Halazon, EMERGE founder and CEO.
“The acquisition of Viral Loops is expected to substantially enhance EMERGE’s profitability and cash flow profile, strengthen the Company’s balance sheet, and potentially improve our cost of capital over time.”
Viral Loops will continue to maintain its team, brand, website and its hundreds of client relationships under EMERGE, said the company, adding
Viral Loops is EMERGE’s first acquisition under its newly formed, EMERGE B2B vertical, designed to complement and strengthen the company’s overall portfolio.
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