“The probability of M&A deals for apps is very low –– this is the reality of the market. I would advise developers who want to sell apps to consider ways to maximize their chances. First, build scalable apps, then look for companies that do acquisitions and analyze their strategy. The insights you gain will help you maximise the likelihood of M&A”, –– says Anatolii Kasianov, HOLYWATER’s co-founder and CTO.
HOLYWATER, a media tech company co-founded by Bogdan Nesvit and Anatolii Kasianov, announced completing its first M&A deal selling its market-leading apps. Three apps, GetHabit, Wigetbox, and Refine, were acquired by an Israeli company for over a million dollars. The primary reason for the sale was the co-founders’ intention to shift HOLYWATER’s focus on creating a content app ecosystem that unlocks creative potential with AI.
Since its launch in 2020, HOLYWATER has expanded rapidly by launching several innovative apps. Three of them became highly successful:
- GetHabit – a comprehensive habit-tracking app that enables users to monitor daily activities, including water intake, step count, exercise routines, and any custom habits they wish to develop.
- WigetBox –– one of the first custom widget applications for iOS devices, launched strategically following Apple’s widget functionality release. The app achieved #1 ranking in the Entertainment category across 50+ countries, reaching 200,000 installations daily.
- Refine –– an AI-powered photo editor that allows users to transform photographs with various creative filters, including age progression, youth filters, zombie effects, and more. This entertaining application demonstrated strong growth and user engagement.
Alongside launching a series of apps, HOLYWATER introduced interactive stories, book and vertical series apps.
In 2021, the founders decided to focus only on content products, even though already-existent apps were the main source of revenue. Why might it be necessary to sell profitable assets to drive exponential product growth? Bogdan Nesvit, HOLYWATER’s co-founder and CEO, shares his thoughts on that:
“HOLYWATER’s vision has always been ambitious—our main goal is to become a unicorn by 2026. We won’t achieve this just by developing different apps, no matter how popular they are. So we decided to focus on what we see as the greatest potential—content products that elevate human potential with AI. Every product in the ecosystem contributes to this mission and has the potential to scale, bringing more value to end users and creators. This isn’t just a pivot; it’s an acceleration toward our biggest market opportunity”.
Once Bogdan and Anatolii decided to sell apps, they started looking for acquirers. For this purpose, they implemented a comprehensive two-pronged approach: market research and strategic networking. During the research, they analysed previous app acquisition deals through various platforms, including Crunchbase, studied app aggregator platforms specialising in quick acquisitions and researched app brokers and intermediaries. That’s how they came up with key buyer profiles: established companies with existing app ecosystems looking for cross-promotion opportunities and new market entrants seeking to acquire expertise through acquisitions.
Understanding the companies’ motivation, the co-founders prepared apps for acquisition: gathered all required metrics, technical documentation, marketing strategies, prepared a pitch and presentation.
During the networking, Bogdan and Anatolii interacted with investment bankers who provided valuable market context. One of the bankers put them in touch with an Israeli company looking for acquisitions to expand its position in the market.
Due diligence was a key stage of the acquisition process, which involved thoroughly analysing all the details of HOLYWATER’s operations. The acquiring company studied the legal/compliance aspect, conducted financial and technical audits, and checked the marketing part – how traffic was purchased. After completing the audit, HOLYWATER received a term sheet – a final document with a price offer.
According to the contract, HOLYWATER developers are expected to support the new owners for a year to successfully transition the entire technical part into the acquirer’s ecosystem.
