Zeta (ZETA) Trading up on M&A News
Shares of Zeta (ZETA) are up about 5% this morning after the company announced it will acquire LiveIntent, a people-based marketing technology company founded in 2009.
LiveIntent operates a proprietary identity graph that helps the company deliver highly personalized marketing through integrations with many of the world’s largest publishers.
Zeta has worked with the company for over five years and management feels confident that integrating LiveIntent’s data assets, publisher network and channel capabilities into the Zeta Marketing Platform (ZMP) will drive a number of growth, efficiency and cross-selling opportunities, and go relatively smoothly (estimated integration time is six months).
The acquisition cost is $250 million in cash and stock, plus an earnout (deal multiple is 16 times Adjusted EBITDA), and is expected to be immediately accretive to earnings. Expected closing time is Q4.
Analysts following ZETA are fans. D.A. Davidson, Barclays, Truist and Needham all spoke positively of the deal.
ZETA has been a phenomenal performer for us, and while the stock looks stretched if you stare at the chart, the momentum here – both from a business and stock perspective – is undeniable.
Keeping at buy. BUY
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