Bullish option flow was detected in NOW stock on January 7, 2022.
Bullish Option Flow
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Bullish option flow was detected in ServiceNow NOW stock with 5,330 calls trading, 3x expected, and implied vol increasing almost 2 points to 48.59%. 1/28 weekly $580 calls and 1/7 weekly $600 calls were the most active options.
NowVertical Group Announces Senior Leadership Changes to Accelerate M&A Roadmap and Integrations in 2022
On January 6, 2022, NowVertical Group Inc. (TSXV: NOW), a global big data analytics software and services company, announced several changes and appointments to its senior leadership team as the Company prepares for further growth in 2022.
The Company is pleased to announce the appointment of Sasha Grujicic as Chief Operating Officer. In this role, Mr. Grujicic will be responsible for guiding and building upon NOW’s M&A vision, managing the day-to-day operations of NOW and driving commercialization throughout the organization. He will be working with the CEO and Founder, Daren Trousdell, to acquire and integrate new companies and assets.
Mr. Grujicic is a highly respected and well-known member of the computing, technology, and business communities. He most recently served as Chief Strategy Officer for 1QBit, an advanced quantum computing company, working to tackle some of the world’s most complex problems using a revolutionary set of quantum and classical technologies. Mr. Grujicic previously served as Chief Strategy & Digital Officer at Dentsu Aegis Network, where he oversaw corporate planning, group-level product and service development, M&A evaluation, client and new business development, financial analysis, and people management of its digital business. Mr. Grujicic also serves as a board member of the Quantum Strategy Institute.
“Sasha brings a powerful combination to the table. It’s rare that you can find someone with a wealth of knowledge and expertise in the fields of future technologies, predictive and prescriptive analytics, and quantum computing that can bring real hands-on operational experience working with major networks at the same time,” said Daren Trousdell. “His stewardship of our future growth and vision will be critical as we move into the new year.”
The Company is also pleased to announce the appointment of Teri Anderson as Chief Financial Officer of the Company. Ms. Anderson previously served as Chief Financial Officer of Affinio Inc. (“Affinio”) and has been a consultant with the Company since its acquisition of Affinio on November 1, 2021. With over 25 years of financial, operations and leadership experience, Ms. Anderson also brings significant experience in the data analytics and software industry. She will replace John Adamovich, who is retiring after serving as the Company’s Chief Financial Officer since completing its reverse takeover transaction in the second quarter of 2021. Mr. Adamovich will assist the Company in an advisory capacity to ensure a smooth transition and will continue to serve on the Company’s board of directors (the “Board”).
“As we move into the next phase of our development and growth, it’s important that we continue to add highly accomplished, talented, and experienced people to our executive leadership team. I am thrilled that we are able to attract such well-respected leaders such as Sasha and Teri,” said Daren Trousdell. “They are joining our executive team at a very exciting time, and I am confident they will be integral to successfully executing our growth objectives and pursuit of M&A opportunities in 2022 and beyond.”
“I would also like to thank John for his dedication and contributions to NOW throughout its early stages of rapid growth. The Company is well-positioned due in no small part to his strategic leadership and deep expertise. The Board and management wish John the best in his retirement and look forward to his continuing guidance as a valued member of our Board,” said Daren Trousdell.
The Company also announced today that Altaf Bahora has stepped down from his role as Chief Technology Officer of the Company to pursue other opportunities. The Board and management team would like to thank Mr. Bahora for his contributions to the Company and wish him every success in his future endeavors.
NOW is a big data, Vertical Intelligence (“VI”) software and services company that is growing organically and through acquisition. NOW’s VI solutions are organized by industry vertical and are built upon a foundational set of data technologies that fuse, secure, and mobilize data in a transformative and compliant way. The NOW product suite enables the creation of high-value VI solutions that are predictive in nature and drive automation specific to each high-value industry vertical. For more information about the Company, visit https://www.nowvertical.com.
ServiceNow Awarded Five-year Contract With the Internal Revenue Service
On December 21, 2021, ServiceNow (NYSE: NOW) announced that the company secured a five-year contract with the Internal RevenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... Service (IRS), to provide the ServiceNow low code development platform. Under the contract, ServiceNow and its partners, Carahsoft Technology Corp. and Intact Technology, will accelerate the IRS’ long-term digital transformation efforts by consolidating 12 legacy systems into a single platform of record.
“For far too long, federal agencies have been tasked with performing some of the most important work in our nation using disparate systems that are often decades-old,” said Steve Walters, vice president, federal, ServiceNow. “As a new generation of employees enter the workforce and citizens’ digital expectations increase, ServiceNow and the IRS will provide IRS employees with modern technology to meet the needs of taxpayers at scale.”
At the height of tax season, IRS call centers field between two to three million calls from taxpayers per day. Maintaining a strong tax administration system at this scale requires organizational excellence, leading technology, and partners with expertise in implementing and deriving maximum value. ServiceNow will support these requirements by integrating solutions for IRS employees to manage workflows, improve documentation of incident assessments, and ultimately streamline their interactions with taxpayers.
“In a new world of work, federal agencies are investing in platforms that spur innovation and protect highly sensitive data of their most important customers – taxpayers,” said Jesse White, chief executive officer, Intact Technology. “With the start of a new fiscal year, this contract marks a turning point in the IRS’ modernization journey as it is the agency’s largest digital transformation venture in half a century.”
The integration of ServiceNow’s cloud-based solutions will also support the IRS’ Human Capital Office in its endeavor to support retiring employees and streamline the onboarding of new employees over the next two years.
NowVertical Group Enters Definitive Agreement to Acquire Allegient Defense
On December 21, 2021, NowVertical Group Inc. (TSXV: NOW) announced that it has entered into a definitive agreement to acquire 100% of the issued and outstanding securities of Allegient Defense, Inc. (“Allegient Defense”), a U.S.-based government defense contractor providing Systems Engineering and Technical Assistance support to the Department of Defense through data analysis and assessment of cutting edge technologies (the “Transaction”).
NowVertical Group is acquiring Allegient Defense as part of their expansion into the U.S. public sector. As a trusted advisor and partner to the U.S. Federal Government, Allegient Defense provides technical expertise related to cloud computing, data analytics, AI and autonomy, directed energy, unmanned aerial vehicles, and next-generation weapons systems. These problem solvers will play a core role in the delivery of NOW’s Vertical Intelligence (VI) Government software and solutions, increasing access to industry-specific programmatic automations and analytic expertise.
Allegient Defense’s innovative approach to providing evaluations and solutions for the U.S. Federal Government earned them SECAF’s award of Government Contractor of the Year for contractors in the $7.5 to $15M revenue group. They have developed deep experience working on behalf of organizations like U.S. Office of Naval Research (ONR), Defense Advanced Research Projects Agency (DARPA), and United States’ departments of Defense, State, and Energy.
“This acquisition by NOW is going to jumpstart a new chapter for our company. The power of the NOW platforms and vision of the team means that we’ll be able to bring a whole new range of critical solutions to bear for our clients,” said Angel Diaz, PMP, CEO of Allegient Defense. “We’re incredibly proud of everything we have accomplished at Allegient over the past 11 years and can’t wait for what the future is going to bring.”
“Allegient Defense is a critical component of NOW’s Government VI solution set. Their analysts and service providers will bring the expert insight and experience necessary to tailor our approach and guarantee success for our public sector clients,” said Daren Trousdell, Chairman & CEO of NOW. “By adding a deep bench of seasoned experts with direct experience in the public sector, we’re able to provide not just technologies but also true solutions for our clients and guarantee that they’re able to win in an increasingly complicated and competitive world.”
Allegient Defense’s current contracted revenue backlog with its customers from 2022 to 2025 is approximately $66,000,000. Allegient Defense currently has approximately 75 full time employees.
Pursuant to the terms of a stock purchase agreement dated December 20, 2021, the Company has agreed to acquire Allegient Defense for total aggregate consideration of $10.4 million, consisting of (i) a closing cash payment of $1,800,000, (ii) a deferred cash payment of $200,000 payable 12 months post-closing, (iii) the issuance on closing of subordinate voting shares of the Company valued at $600,000 at the greater of (A) the CAD equivalent of US$1 per share and (B) the Company’s 20-day VWAP pre-closing, (iv) the assumption of a third party loan to Allegient Defense with an outstanding balance of approximately $3,800,000, which will be partially repaid and refinanced as of Closing, and (v) an earn-out of up to an additional $4,000,000 payable in subordinate voting shares of NOW (valued using the same method as the subordinate voting shares to be issued at closing) and/or cash, payable over a three-year period post-closing and based on Allegient Defense achieving certain EBITDA targets.
Closing of the acquisition is subject to customary closing conditions, including the receipt of TSXV approval and certain U.S. regulatory approvals.
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📉 NowVertical Stock Technical Analysis
The short-term trend is negative, the long-term trend is neutral. NOW is part of the Software industry. There are 346 other stocks in this industry. NOW outperforms 72% of them. NOW is currently trading in the middle of its 52-week range. The S&P500 Index however is trading in the upper part of its 52-week range, so NOW is lagging the market slightly.
There is a resistance zone ranging from 622.28 to 634.58. There is also a resistance zone ranging from 649.12 to 651.24. These zones are formed by a combination of multiple trend lines and important moving averages in multiple time frames. Finally, there is a resistance zone ranging from 665.81 to 666.31. This zone is formed by a combination of multiple trend lines in the daily time frame.
The technical rating of NOW is bad and it also does not present a quality setup at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when NOW stock consolidates and is a good long entry.