Onfolio targets $5-10 million EBITDA in acquisitions by year-end
Onfolio Holdings Inc. (NASDAQ: ONFO) announced it activated its acquisition program and will target acquiring between $5 million and $10 million in aggregate annual adjusted EBITDA before the end of the year. The company will evaluate cash-generative businesses across digital marketing, e-commerce, and financial media.
The acquisitions will target an average multiple of approximately 2-4x trailing adjusted EBITDA, structured with upfront cash consideration and seller-financed notes with performance-based earnout provisions. The company stated the acquisitions could approximately double its revenue run rate and bring it to consistent profitability on both EBITDA and GAAP net income basis.
"Capital is available, the pipeline is full, and we are ready to move," said Dominic Wells, Chief Executive Officer. "Our goal is to add $5 to $10 million in EBITDA to the portfolio before the end of the year."
Wells indicated the company intends to acquire businesses in marketing agencies and e-commerce brands, where it has applied its AI operating model. The company may expand into financial media and investor services.
The CEO noted e-commerce presents opportunities as marketing costs decline due to AI efficiencies. "For the first time in years, we're seeing margin expansion in the space as marketing costs come down due to AI efficiencies," Wells stated.
Onfolio Holdings operates cash-generative online businesses across marketing, education, and e-commerce verticals, using AI across its operations to improve acquired businesses and develop AI-powered products.
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