Zeta Global strengthens its position in AI marketing with the acquisition of LiveIntent

Zeta Global's shares are trending upward pre-market after the company announced its plan to acquire LiveIntent for a total of $250 million. This acquisition is intended to enhance the Zeta Marketing Platform with LiveIntent's resources and networks and further expand Zeta's position in AI-driven marketing. Zeta plans to pay $77.5 million in cash and $172.5 million in common stock at the closing of the transaction. The stock component will be subject to sales restrictions upon release. Additionally, the agreement includes a potential additional compensation of up to $25 million per year in cash and stock, contingent on significant adjusted EBITDA growth and sustainable margin expansion from 2025 to 2027. Furthermore, Zeta will issue $25 million in performance-based stock options to LiveIntent's management team, provided specific performance goals are met. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions. David A. Steinberg, co-founder and CEO of Zeta Global, emphasized the importance of the acquisition: "Given the current trend where brands view first-party data as an asset and seek to implement AI practically, this acquisition accelerates Zeta's growth cycle. It positions the merged company to grow faster than the market." Steinberg also highlighted existing interest from Zeta's clients in cross-selling opportunities, which could accelerate LiveIntent's growth, as well as Zeta's organic growth. In conclusion, take a look at Benzinga Edge for unique market insights and tools that could give you an advantage in today's competitive market.