NEW YORK - Zeta Global (NYSE: NYSE:ZETA), a leading AI-powered marketing platform, has announced its definitive agreement to purchase LiveIntent, a company specializing in people-based marketing technology. The acquisition, valued at $250 million, is set to enhance Zeta's identity resolution capabilities and expand its publisher monetization and mobile and retail media solutions.
LiveIntent's proprietary technology, which includes a vast identity graph of over 235 million unique hashed email addresses monthly, will be integrated into Zeta's Data Cloud. This move aims to refine Zeta's marketing programs and extend its reach in the AI marketing domain.
The deal also includes LiveIntent's network of over 2,000 premium publishers, positioning Zeta to launch a new Publisher Cloud and compete with the reach and targeting capabilities of major online platforms. The acquisition is expected to accelerate the growth of Zeta's mobile and retail media products, enhancing the company's ability to predict customer behavior and activate cross-channel campaigns.
David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta Global, expressed confidence that the acquisition aligns with their disciplined M&A strategy and will be accretive to earnings. He highlighted the complementary nature of LiveIntent's platform and potential cross-selling opportunities with Zeta's existing customer base.
LiveIntent's CEO, Matt Keiser, echoed this sentiment, acknowledging Zeta's growth and expressing enthusiasm for the combined capabilities the merger will bring to marketers and publishers.
Under the terms of the merger agreement, Zeta will pay $77.5 million in cash and $172.5 million in common stock at closing. Additional earnout considerations and performance stock units tied to future financial targets have been agreed upon as part of the transaction.
Zeta also reaffirmed its third quarter 2024 guidance, with expected revenue of at least $255 million and Adjusted EBITDA of at least $50.2 million. The transaction is anticipated to close in the fourth quarter of 2024, subject to customary closing conditions.
The acquisition is poised to solidify Zeta's position in the market and support its mission to simplify sophisticated marketing efforts through AI-powered solutions.
This news article is based on a press release statement from Zeta Global.
In other recent news, Zeta Global Holdings Corp has seen a series of upgrades from various financial firms, including Roth/MKM, DA Davidson, B.Riley, Needham, and Craig-Hallum. These upgrades follow Zeta's impressive financial performance, including a reported 35% year-over-year revenue growth and a 33% rise in year-over-year revenue for the second quarter of 2024. The company has also raised its third-quarter expectations.
Zeta Global has also made significant financial moves, including a public offering of 11 million shares of its Class A common stock and securing a $550 million loan facility for debt refinancing. The company's strategic financial decisions are expected to enhance its financial structure and flexibility.
The company's growth is partly attributed to the introduction of a new mobile offering unveiled at the recent Zeta Live user conference, which is expected to contribute to further growth. The conference also showcased Zeta's product roadmap, including new mobile functionalities, vertical clouds, and additional AI agents.
Analysts from the aforementioned firms expressed confidence in Zeta Global's growth trajectory and the potential of its new mobile offering. The company's new product offerings are expected to expand its total addressable market, and ongoing developments with industry partners are cited as reasons for optimism about the company's future performance.
These recent developments underscore Zeta Global's strong positioning and growth trajectory, with analysts expressing confidence in the company's ability to establish itself as a leading entity in the Software as a Service sector.
InvestingPro Insights
Zeta Global's strategic acquisition of LiveIntent aligns well with the company's impressive growth trajectory, as evidenced by recent InvestingPro data. The company's revenue growth of 25.16% over the last twelve months and a robust 32.61% growth in the most recent quarter underscore its expanding market presence. This acquisition is likely to further accelerate Zeta's growth momentum.
InvestingPro Tips highlight that Zeta has seen a strong return over the last month and three months, with the stock trading near its 52-week high. This positive market sentiment reflects investor confidence in Zeta's strategic moves, including the LiveIntent acquisition.
The company's liquid assets exceeding short-term obligations, as noted in another InvestingPro Tip, suggests that Zeta is well-positioned to finance this $250 million acquisition without compromising its financial stability. This financial health is crucial as Zeta integrates LiveIntent's technology and expands its service offerings.
While Zeta currently operates with a moderate level of debt and is not yet profitable over the last twelve months, analysts predict the company will be profitable this year. This outlook aligns with management's expectation that the LiveIntent acquisition will be accretive to earnings.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Zeta Global, providing deeper insights into the company's financial health and market position.
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