Banzai International Signs a $53.2 Million Acquisition Deal for Portland’s Act-On Software

News Summary

Banzai International, a Seattle-based marketing technology company, has announced its acquisition of Portland’s Act-On Software for $53.2 million. This deal includes $33.2 million in stock and $20 million in cash. Act-On, established in 2008, has built a strong reputation with clients like Hitachi and Progressive Insurance. The acquisition is projected to boost Banzai’s revenue significantly, enhancing its product offerings in the competitive marketing tech sector.

Banzai International Signs a $53.2 Million Acquisition Deal for Portland’s Act-On Software

In an exciting move that has the tech and marketing communities buzzing, Banzai International, a marketing technology company based in Seattle, is set to acquire Act-On Software, a Portland-based marketing automation firm. This deal is valued at a whopping $53.2 million, consisting of $33.2 million in stock shares and $20 million in cash. Talk about a substantial investment!

A Peek into Act-On Software

Founded back in 2008, Act-On Software has earned a strong reputation for its tailored marketing services that help businesses enhance their demand generation and consumer marketing efforts. Some prominent names in their customer lineup include Hitachi, Best Buy, and Progressive Insurance. That’s quite the client roster, isn’t it?

Comments from Banzai’s Leadership

Joe Davy, the CEO of Banzai, has spoken highly of Act-On’s impressive capabilities. He described it as the “most advanced marketing automation product” currently on the market, highlighting how this acquisition will mesh well with Banzai’s existing offerings. Davy stated that Act-On will serve as a “hub type of product” in Banzai’s operations, allowing for better integration of their marketing tools.

Projected Growth on the Horizon

As for the financial implications, this acquisition is expected to boost Banzai’s revenue by $27 million over the 12-month period ending December 31, 2025. That’s a significant jump that shows just how much confidence Banzai has in its latest acquisition!

The Background of Banzai and Act-On

Banzai made waves earlier this year when it went public on the Nasdaq, and since then, it has been on an acquisition spree. In just two months, Banzai has acquired two other companies: OpenReel and Vidello, both aimed at enhancing its suite of marketing and video creation tools. As of September 30, 2024, Banzai reported an annual recurring revenue of $4.4 million and held $4.3 million in cash, although it is also facing an adjusted net loss of $1.45 million.

Meanwhile, Act-On has successfully raised over $82 million through funding rounds, drawing in significant investments from reputable firms including Voyager Capital, US Venture Partners, Technology Crossover Ventures, and others. Diane Fraiman from Voyager Capital has remarked that this acquisition is a “positive outcome” for Act-On, proving its growth and solid standing in the market.

What Comes Next?

As part of the acquisition news, it was also announced that Kate Johnson, the CEO of Act-On will be leaving the company following the deal, although it’s hopeful that most of Act-On’s over 100 employees will be joining Banzai to continue their work under the new umbrella.

Looking Towards the Future

With aspirations to develop a platform of AI-enabled marketing technology solutions, Banzai aims to make marketing processes simpler and more efficient for their clients. This acquisition of Act-On is an important step toward reaching that goal.

This exciting merger not only reinforces Banzai’s commitment to growth but also shows how competitive and constantly evolving the marketing technology sector really is. As we await further developments, it’s clear that the future for both companies looks bright!

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Additional Resources

• GeekWire
• Wikipedia: Marketing Automation
• Globe Newswire
• TipRanks
• Benzinga
• Google Search: Banzai International Act-On Software