Zeta Global shares are trending higher premarket after the company announced it would acquire LiveIntent for a total of $250 million. This acquisition is intended to strengthen the Zeta Marketing Platform with LiveIntent’s resources and networks and further expand Zeta’s position in the AI-powered marketing space.
Zeta is scheduled to pay $77.5 million in cash and $172.5 million in common stock upon closing of the transaction. The share portion is subject to sales restrictions after release. Additionally, the agreement includes potential additional compensation of up to $25 million per year in cash and stock, contingent on critical Adjusted EBITDA growth and sustained margin expansion in 2025 to 2027.
In addition, Zeta will issue $25 million in performance-based equity awards to LiveIntent’s management team, subject to the achievement of specific performance targets. 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, emphasizes the significance of the acquisition: “Given the current trend of brands viewing first-party data as a business asset and putting AI into practice, this acquisition accelerates Zeta’s growth cycle. It puts the combined company in a position to grow faster than the market.” Steinberg also emphasizes that there is already interest from Zeta’s customers in cross-selling opportunities, which could accelerate LiveIntent’s growth, as well as Zeta’s organic growth.
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