Banzai Expands with OpenReel Acquisition Boosting Revenue
Deal News | Dec 10, 2024 | Globenewswire
Banzai International, Inc., a prominent marketing technology firm, has announced a definitive agreement to acquire OpenReel, a leader in digital video creation. This strategic acquisition, valued at $19.6 million in Banzai's stock and warrants, is expected to significantly bolster Banzai's portfolio by integrating OpenReel's capabilities into its marketing solutions. Banzai, known for its cutting-edge AI-driven marketing tools, aims to enhance its service offerings by providing clients with advanced video content creation solutions, which are increasingly crucial in contemporary marketing strategies. OpenReel's robust customer portfolio, including major entities like Bristol Myers Squibb and US Steel, underscores the strategic value of this acquisition. The deal is poised to further Banzai's vision of creating a comprehensive AI-powered marketing platform, thereby driving long-term value for its stakeholders. The transaction is anticipated to close in December 2024, pending typical closing conditions.
Sectors
- Marketing Technology
- Digital Video Creation
Geography
- United States – Banzai is based in Seattle, and OpenReel operates out of New York, situating this acquisition firmly within the U.S. market.
Industry
- Marketing Technology – The article discusses Banzai, a marketing technology company, expanding its portfolio through the acquisition of OpenReel, enhancing its marketing solution offerings.
- Digital Video Creation – OpenReel specializes in digital video creation, which is central to the acquisition, illustrating its pivotal role in modern marketing strategies.
Financials
- 19.6 million – The total value of the acquisition deal between Banzai and OpenReel, paid in Banzai Class A Common Stock and warrants.
- 10.9 million – The post-acquisition annualized trailing twelve-month revenue expected for Banzai after incorporating OpenReel.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Banzai International, Inc. | Acquirer | Company | A leading marketing technology company offering AI-driven solutions to enhance marketing and sales efforts. |
| OpenReel | Target | Company | A digital video creation platform that facilitates the rapid production of branded video content. |
| Joe Davy | CEO | Person | The Founder and CEO of Banzai, involved in the strategic direction and expansion of the company through acquisitions. |
| Lee Firestone | CEO of OpenReel | Person | CEO and co-founder of OpenReel, leading the company through its acquisition by Banzai. |
| U.S. Securities and Exchange Commission | Regulatory Body | Government | The regulatory body with which Banzai filed their Form 8-K with details about the acquisition. |