Back in control, Peart eyes stock market listing to fund Bluedot

SSL Venture Capital Jamaica Limited, which trades as SSL Ventures, has offloaded its remaining 30 per cent interest in Bluedot Data Intelligence for US$99,000 to Larren Peart, ending a three-year investment in the data marketing company.

At that price, the deal values Bluedot at US$330,000. But founder and CEO Larren Peart, who says he plans to list the company on the junior stock market this year, is contending that he paid a discounted price for the shares in December, and as such, the deal with SSL Ventures does not accurately reflect Bluedot’s value. However, he did not offer an estimate of what the real value would be.

“The management of SSL Ventures and I have a long-standing relationship, and so we had some discussions and they took the decision to sell us at a discount. But the price at which the SSL sold the shares is not a true reflection of the company’s valuation,” Peart told the Financial Gleaner.

In addition to the SSL transaction, Peart also reacquired the 20 per cent stake held by Yes Iyah, and is in the process of buying Zachary Harding’s 10 per cent and Kimala Bennett’s 20 per cent holdings. Both Bennett and Harding say the deals are expected to close soon. The value of those transactions have not been not disclosed.

SSL Ventures had initially struck a deal with Peart in March 2020 for him to reacquire SSL’s then 50 per cent stake in the company at US$300,000, which was below the US$396,000 price it paid for the shares at acquisition in 2018. But when the deal with Peart fell through, SSL Ventures sold 20 per cent of Bluedot to Yes Iyah, a company owned by First Rock’s Ryan Reid and Sean Shelton, for US$66,000.

SSL Ventures CEO Anthony Dunn said on Wednesday that between the deals struck with Bluedot and Yes Iyah, the venture capital company offloaded its 50 per cent shareholding in Bluedot over time for “US$240,000”, inclusive of a US$75,000 payment made prior to the December 20 transaction with Peart. That’s US$156,000 below SSL’s initial investment, and US$60,000 below its initial deal with Peart in 2020.

“It was reported that the 30 per cent stake was sold for US$99,000, but Peart had made an initial payment of US$75,000 which could have been foregone when the contract was rescinded in June 2020,” Dunn told the Financial Gleaner, referring to the initial deal in which Peart was to have reacquired 50 per cent holdings from SSL. “We decided to take both payments into consideration, which would put Peart’s payment at US$174,000,” he said.

Dunn added that the price of the shares was affected by the fact that Bluedot lost some of its contracts due to the pandemic.

Meanwhile, with Bluedot now fully in his control, Peart said he was weighing an equity raise to finance its growth.

“I’m considering listing the company. I think we have strong financials and a strong brand,” he said.

Bluedot Data Intelligence Limited is a full-service market research, social media and data insights agency that provides support services, data-driven strategy recommendations, social media optimisation solutions, and management consulting services to clients in various industries.

The majority of the revenue earned by the company comes from large corporate companies, government and non-governmental organisations, or NGOs, but its focus over the short to medium term will be on increasing business with small and medium-sized businesses.

Peart is also looking to build out a consultancy division for Bluedot and expand its data analytics services, with a focus on artificial intelligence and machine learning data analytics, including credit risk models for banking institutions.

His plans are not limited to Jamaica. He also plans to enter Caribbean markets in the first quarter of 2022 through Bluedot’s virtual platforms. Some of the markets being targeted are Trinidad & Tobago, Barbados and The Bahamas.

karena.bennett@gleanerjm.com