News Summary
Banzai International announces its acquisition of Portland-based Act-On Software for $53.2 million. The deal, consisting of stock and cash, aims to enhance Banzai’s marketing technology suite. Act-On’s established client base and innovative tools are expected to elevate Banzai’s revenue and service offerings. This strategic move reflects Banzai’s ambitious growth plans in the marketing tech industry.
Banzai International Signs $53.2 Million Acquisition Deal for Portland’s Act-On Software
Exciting news in the marketing technology world! Banzai International, a company based in Seattle, is poised to make a significant splash with its plans to acquire Act-On Software, a well-known provider of marketing automation services located in Portland, Oregon. This acquisition is valued at an impressive $53.2 million, comprised of $33.2 million in common stock shares and an additional $20 million in cash.
What Does Act-On Bring to the Table?
Act-On Software has been around since 2008 and specializes in helping businesses enhance their demand generation and consumer marketing efforts. They’ve built a solid reputation over the years, boasting an impressive roster of clients that includes industry giants like Hitachi, Best Buy, and Progressive Insurance. It’s no wonder that Joe Davy, the CEO of Banzai, described Act-On as the “most advanced marketing automation product currently available on the market.” With such an accolade, this acquisition seems like a savvy move for Banzai.
Enhancing Banzai’s Offerings
According to Davy, this acquisition isn’t just about expansion; it’s also about integration. The plan is to merge Act-On’s powerful tools with Banzai’s existing offerings, transforming the platform into a “hub type of product” for their operations. This will not only streamline how they operate but is also expected to provide a more comprehensive solution for their clients and customers.
Projected Financial Growth
The financial forecasts look great as well. Banzai anticipates this acquisition will boost their revenue by $27 million for the 12-month period ending December 31, 2025. For a company that just went public on Nasdaq earlier this year, this growth could be a game-changer.
A History of Investments
Act-On Software has garnered over $82 million through various funding rounds over the years, attracting investment from well-established firms such as Voyager Capital, US Venture Partners, Technology Crossover Ventures, Norwest Venture Partners, and Beedie Capital. Diane Fraiman of Voyager Capital expressed optimism about the acquisition, noting that it represents a positive outcome for Act-On, showcasing the company’s growth and solid standing in the market.
Changes in Leadership
As with any acquisition, there are bound to be changes. Following the deal, Kate Johnson, the CEO of Act-On, will be leaving the company. However, the majority of Act-On’s talented workforce, numbering over 100 employees, is expected to join the Banzai team, which is a big win for everyone involved. After all, it’s the people who drive innovation and success!
Recent Acquisition Moves
This acquisition comes on the heels of two other recent purchases by Banzai, namely OpenReel and Vidello, both aimed at enriching their suite of marketing and video creation tools. It’s clear that Banzai is on a roll and is not shy about expanding its portfolio in the tech space.
Financial Position as of 2024
To give you an even clearer picture of Banzai’s current standing, as of September 30, 2024, they reported an annual recurring revenue of $4.4 million along with an adjusted net loss of $1.45 million. They also held $4.3 million in cash. Moving forward, Banzai aims to develop a platform of AI-enabled marketing technology solutions, which could greatly simplify marketing processes for their clients.
All in all, Banzai International’s acquisition of Act-On Software marks an exciting chapter in the marketing tech industry. With ambitions to innovate and grow, both companies are poised to make significant strides in delivering valuable services to their customers.
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Additional Resources
- GeekWire
- Wikipedia: Marketing Automation
- Globe Newswire
- TipRanks
- Benzinga
- Google Search: Banzai International Act-On Software
