An illustration showing the partnership between Banzai International and Act-On Software, symbolizing growth and innovation.
Banzai International, a Seattle-based marketing technology firm, has announced its acquisition of Act-On Software for $53.2 million. This acquisition aims to enhance Banzai’s service offerings, integrate advanced marketing automation capabilities, and project a revenue increase of $27 million by the end of 2025. As Banzai continues to grow following its Nasdaq debut, the integration of Act-On is expected to redefine its marketing strategy and establish a stronger presence in the industry.
In a bold move that has captured the attention of the tech world, Banzai International, a marketing technology firm hailing from Seattle, has announced plans to acquire Act-On Software, a dynamic player in the realm of marketing automation based in Portland, Oregon. This acquisition is valued at a notable $53.2 million, comprised of $33.2 million in common stock shares and $20 million in cold hard cash.
Act-On Software has been making waves in the marketing world since its inception in 2008. The organization specializes in marketing services focused on enhancing demand generation and consumer marketing strategies, making it a valuable asset for businesses looking to expand their outreach. Some of the company’s well-known clients include giants like Hitachi, Best Buy, and Progressive Insurance.
According to Joe Davy, the CEO of Banzai, the acquisition represents a significant advancement for their product lineup. He referred to Act-On as “the most advanced marketing automation product currently available on the market.” By incorporating Act-On into their operations, Banzai aims to create a “hub type of product” that streamlines their offerings and enhances their overall tech suite.
And there’s more good news on the horizon! This acquisition is projected to pump an impressive $27 million into Banzai’s revenue for the 12-month period ending December 31, 2025. It’s a strategic move that could position them more favorably in the competitive landscape of marketing technology.
Banzai itself has been on an upward trajectory, having gone public on the Nasdaq earlier this year in 2023. With its sights set on expanding its suite of services, Banzai has been quite active in the market. In fact, this acquisition of Act-On marks Banzai’s third purchase in two months, following the acquisitions of OpenReel and Vidello, two companies that enrich Banzai’s marketing and video creation capabilities.
As of September 30, 2024, Banzai reported an annual recurring revenue of $4.4 million along with an adjusted net loss of $1.45 million, all while holding $4.3 million in cash. The corporate strategy is clear: focus on building a platform of AI-enabled marketing technology solutions aimed at simplifying the marketing processes for clients.
In light of the acquisition, there will be significant transitions at Act-On. The company’s CEO, Kate Johnson, is set to depart once the deal is finalized. However, the news isn’t all bittersweet; most of Act-On’s over 100 employees are expected to join the Banzai team, bringing along their expertise and creativity to further fuel the company’s goals.
Before this acquisition, Act-On Software raised over $82 million through various rounds of funding. Notable contributors include Voyager Capital, US Venture Partners, Technology Crossover Ventures, Norwest Venture Partners, and Beedie Capital. According to Diane Fraiman of Voyager Capital, this acquisition signifies a positive outcome for Act-On, illuminating its growth trajectory and strong positioning in the marketing tech sector.
As the dust settles from this monumental deal, industry watchers are keenly monitoring both Banzai and Act-On. The integration of Act-On’s sophisticated marketing services into Banzai’s product repertoire is sure to redefine the marketing landscape in the coming years. With plans to streamline processes and enhance consumer marketing strategies, the future looks bright for this emerging power duo.
Stay tuned as we continue to follow this thrilling development that could reshape the marketing technology industry!
News Summary As federal employees in Detroit navigate a new buyout proposal launched by the…
News Summary The Trump administration has introduced a buyout program for federal employees, including over…
News Summary Wayne County celebrates a significant milestone with a record low of 2,111 tax…
News Summary A devastating single-car accident on Interstate 275 in Romulus, Michigan, occurred early Sunday…
News Summary OpenAI is in discussions to secure $40 billion in a new funding round,…
News Summary As 2024 closes, the US economy shows a growth rate of 2.3%, down…