Zeta Global Acquires LiveIntent for $250M, Boosting AI-Powered Marketing Capabilities

Zeta Global Expands Reach with $250M LiveIntent Acquisition, AI-Driven Growth Ahead - Zeta Global Holdings (NYSE:ZETA)

Acquisition expected to boost Zeta's growth with cross-selling synergies and accelerate AI-powered marketing solutions. Zeta Global Holdings Corp. ZETA shares are trading higher premarket on Wednesday. The company disclosed its agreement to acquire LiveIntent for a total of $250 million. LiveIntent's assets, publisher network, and channel capabilities will strengthen the Zeta Marketing Platform and advance Zeta's position in AI-powered marketing. The company expects to pay $77.5 million in cash and $172.5 million in common stock at closing. The stock portion will be subject to a lockup and sale volume restrictions after its release. The agreement includes a potential earnout of up to $25 million per year, split 50% cash and 50% stock, based on significant Adjusted EBITDA growth and sustained margin expansion in 2025, 2026, and 2027. Also Read: Zeta Global Unveils New AI Tools For Mobile Marketing: Details Additionally, Zeta will issue $25 million in Performance Stock Units to LiveIntent's management team, contingent on meeting specific performance and retention targets during the same period. The transaction is expected to close in the fourth quarter of 2024, pending customary closing conditions. Zeta reaffirmed its third-quarter 2024 guidance of revenue of at least $255 million ($251.15 million estimate) and adjusted EBITDA of at least $50.2 million. David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta Global said, "As more brands view first party data as a corporate asset, seek to make AI actionable, and move towards a single platform that powers more efficient and effective marketing across the customer lifecycle, this acquisition accelerates Zeta's flywheel and positions the combined company to continue to grow faster than the market." "This acquisition is immediately accretive to earnings and priced at a highly attractive Adjusted EBITDA multiple of ~16x. We already have interest from Zeta customers in our largest verticals for cross selling opportunities, and we believe these synergies can accelerate LiveIntent's growth while continuing Zeta's strong organic growth rates." As of June 30, the company held cash and cash equivalents of $154.7 million. Investors can gain exposure to the stock via the Invesco Dorsey Wright Technology Momentum ETF PTF and the Alpha Architect U.S. Quantitative Momentum ETF QMOM. Price Action: ZETA shares are up 4.27% at $33.20 premarket at the last check Wednesday. Photo via Shutterstock Read Next: Zeta Global's AI Cloud: Your Secret Weapon for Massive Growth Market News and Data brought to you by Benzinga APIs

Zeta Global to acquire LiveIntent for $250M to expand AI-powered marketing capabilities - SiliconANGLE

Zeta Global to acquire LiveIntent for $250M to expand AI-powered marketing capabilities Marketing technology firm Zeta Global Holdings Corp. announced today that it had entered into an agreement to acquire email advertising and marketing platform company LiveIntent Inc. for $250 million in a mix of cash and common stock. Founded in 2009, LiveIntent offers a self-described "people-based marketing platform" that is designed to help brands and publishers reach audiences through email, mobile apps and the web. The platform leverages first-party data to allow marketers to target customers effectively, even as third-party cookies become obsolete. LiveIntent's platform focuses on audience identity and engagement to allow advertisers to deliver personalized experiences without compromising user privacy. The company's approach to email advertising ensures ads are shown to individuals based on real-time data. The company also provides tools for measurement and optimization that help marketers maximize campaign performance and revenue. The platform integrates seamlessly into existing systems and, in doing so, simplifies identity resolution and audience reactivation across channels. For Zeta, the acquisition of LiveInent will bolster the Zeta Marketing Platform and advance Zeta's position in artificial intelligence-powered marketing. LiveIntent's acquisition also enhances Zeta's identity resolution capabilities by integrating over 235 million unique hashed email addresses into Zeta's Data Cloud. Doing so will boost Zeta's existing people-based marketing solutions and strengthen Zeta's ability to deliver personalized marketing experiences by improving identity accuracy and reach. The acquisition also brings over 2,000 premium publishers into Zeta's network, expanding their footprint into publisher monetization. Post acquisition, Zeta plans to launch Publisher Cloud, a product that rivals walled garden ecosystems by enhancing cross-channel targeting and engagement for brands and retailers alike. "We are excited to welcome LiveIntent to Team Zeta as we continue to build out our position and sharpen our differentiation in AI-powered marketing," David A. Steinberg, co-founder, chairman, and chief executive officer of Zeta Global, said in a statement. "As more brands view first-party data as a corporate asset, seek to make AI actionable and move towards a single platform that powers more efficient and effective marketing across the customer lifecycle, this acquisition accelerates Zeta's flywheel and positions the combined company to continue to grow faster than the market." Coming into its acquisition, LiveIntent had raised $64.8 million over four rounds, according to Tracxn. Investors in the company include FTV Capital LP, First Round Capital LP, Battery Ventures LP, Shasta Ventures Management, Bullpen Capital LP, Valor Capital Group and Alpha Venture Partners LP.