Ad tech company Conversant acquired for $2.3 billion by Alliance Data

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Conversant, an ad tech company based in Westlake Village has just been acquired for $2.3 billion in cash and stock by Alliance Data. Previously named ValueClick, Conversant serves as a go-between for its marketing clients. Its new parent company, Alliance Data Systems Corp, based in Dallas, engages in both online and traditional advertising.

 

"The strategic and cultural fit of the two companies is ideal. Importantly, the acquisition ‘bulks up’ Alliance Data in digital marketing, which is experiencing the fastest secular growth. I am also excited about leveraging Conversant's digital capabilities across the entire Alliance Data organization,” said Ed Heffernan CEO of Alliance Data, in a statement. “I believe this combination will boost demand for Conversant's products and also potentially drive growth rates with existing clients at Epsilon and all other Alliance Data businesses.”

 

Conversant will now have more powerful resources for its affiliate marketing and media projects, including advertising, promotions, or incentives. And Alliance expects to see faster growth in the electronic arena, with Conversant on board, than it did when it was attempting to navigate digital marketing on its own.

 

Alliance will pay Conversant shareholders $35 dollars per share in cash and stock, and the companies will now tackle the $400 billion marketing industry as one. Alliance said that the purchase should close by the year's end and turn a profit right away, adding 50 cents per share to overall earnings in the first year and 75 cents per share in the second.

 

"As Conversant continues down its path towards providing unique insights on its clients' customers, we will distinguish ourselves from the more commodity-like aspects of the display space. Through the use of first-party transactional data, and the ability to use the insights gleaned to ‘personalize’ campaigns, our model becomes more similar to Alliance Data's successful model,” said Conversant CEO John Giuliani. “Gaining access to the huge data-driven platforms at Alliance Data will allow the combined entity to offer clients an end-to-end solution across all channels."