Banzai Expands with Act-On Acquisition, Boosts Revenue to $44M
Deal News | Jan 23, 2025 | Globenewswire
Banzai International, Inc., a leading marketing technology company, has announced a definitive agreement to acquire Act-On Software Inc. This acquisition is poised to enhance Banzai’s suite of AI-driven marketing tools. The integration of Act-On's marketing automation platform, known for its ease of use and AI capabilities, promises to expand Banzai's offerings to business marketers on a broader scale, aiming to simplify marketing automation and improve customer engagement. Act-On serves prominent clients such as Hitachi and Best Buy, focusing on efficient, multi-channel customer interactions, lead generation, and increasing return on marketing investment. Post-acquisition, Banzai forecasts a revenue impact totaling $44 million, a 152% increase in trailing twelve months revenue, driven by $27 million from Act-On. The transaction, with $33.2 million equity and $20 million cash components, values the deal at $53.2 million, projected to close in February 2025 subject to conditions. Banzai's strategy involves building an encompassing suite of AI-powered tools to cater to marketers’ evolving needs.
Sectors
- Marketing Technology
- Artificial Intelligence
- Software Development
Geography
- United States – Banzai is based in Seattle, Washington, and Act-On is headquartered in Portland, Oregon, making the U.S. the geographic focus of the acquisition.
Industry
- Marketing Technology – The article deals with Banzai and Act-On, both of which are companies that operate in the marketing technology sector, providing tools and platforms for marketing automation and customer engagement.
- Artificial Intelligence – Act-On provides AI-driven marketing solutions, and Banzai aims to enhance its offerings with AI-enabled marketing and sales tools through this acquisition.
- Software Development – This involves the development and integration of marketing automation software, a core component of Act-On's business model.
Financials
- $53.2 million – Total enterprise value for the acquisition of Act-On Software by Banzai.
- $33.2 million – Amount of the merger consideration in Banzai Class A Common Stock and/or Pre-Funded Warrants.
- $20 million – Cash consideration for the acquisition.
- $44 million – Banzai's projected TTM revenue post-acquisition for the period ending December 31, 2025.
- 152% – Percentage increase in Banzai's TTM revenue due to the acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Banzai International, Inc. | Acquirer | Company | A NASDAQ-listed marketing technology company providing AI-enabled marketing and sales solutions. |
| Act-On Software Inc. | Target | Company | A provider of marketing automation platforms for B2B customers, specializing in AI-powered solutions for customer engagement. |
| Joe Davy | CEO | Person | Founder and CEO of Banzai International, Inc. |
| Kate Johnson | CEO | Person | CEO of Act-On Software. |
| Rachel Meyrowitz | Director of Demand Generation | Person | Media contact for Banzai. |