Online advertising firm Sizmek has reached a definitive agreement to purchase adtech provider Rocket Fuel, both companies confirmed last week. The acquisition values Rocket Fuel at USD 145 million, with Sizmek buying Rocket Fuel’s common stock for USD 2.60 per share.
Sizmek say that the thinking behind the merger is for both companies to combine their respective solutions into one offering, thereby amplifying their collective adtech presence. Sizmek creates online tools for buying, targeting and optimizing ads, while Rocket Fuel specializes in using AI to enhance online ad campaigns.
While fielding questions regarding the acquisition, Executive Chairman of Sizmek, Dr. Mark Grether stated:
The acquisition of Rocket Fuel brings omni-channel creativity and AI-enabled decisioning together under one roof, providing our clients with a self-service predictive marketing platform that optimizes campaigns across the entire media plan.
This is the next logical step in marketing automation–media optimization and full creative optimization combined, bringing together the context and the creative for the optimal consumer experience. The result is advertising that is deeply personalized, highly intuitive, and AI-enabled for peak performance, redefining the boundaries of creative possibility and media execution.
Similarly, CEO of Rocket Fuel, Randy Wootton, had this to say when questioned:
By integrating with Sizmek, we’re effectively combining the powerful brand-building insights delivered via our Predictive Marketing Platform’s Decision Engine, with Sizmek’s creative optimization platform.
This union creates one integrated, full-funnel solution to enable agencies and their brands address key performance objectives across paid, owned and earned media.
The deal is officially expected to go through by the end of Q3 2017, making Rocket Fuel a private company again, following a few turbulent years while being publicly listed.