Banzai to Acquire Act-On Software for $53.2M
Deal News | Jan 23, 2025 | Voyager Capital LLC
Seattle-based marketing technology company Banzai International has acquired Act-On Software, a Portland-based marketing automation software provider, for $53.2 million. The deal, partially funded by a $100 million agreement with Yorkville Advisors, consists of $33.2 million in common stock shares and $20 million in cash consideration. This acquisition is part of Banzai's strategy to form a comprehensive AI-enabled marketing platform by 2025. Banzai's recent acquisitions reflect its rapid growth trajectory, following its public listing on Nasdaq in 2023. Act-On, founded in 2008 and backed by investments from Voyager Capital, USVP, TCV, Norwest Venture Partners, and Beedie Capital, had gone through a recapitalization in 2021 and will bring a $27 million revenue boost to Banzai. Upon completion, most of Act-On's 100+ employees will join Banzai, though Act-On's CEO, Kate Johnson, is set to depart. This marks Banzai's third acquisition in two months, following the acquisition of OpenReel and the planned acquisition of Vidello.
Sectors
- Marketing Technology
- Private Equity & Venture Capital
Geography
- United States – The companies involved, Banzai International and Act-On Software, are based in Seattle, Washington, and Portland, Oregon, respectively.
Industry
- Marketing Technology – The article involves companies that operate in the marketing technology sector, offering tools and software for marketing automation, content creation, and virtual event management.
- Private Equity & Venture Capital – Voyager Capital and other venture capital firms involved with Act-On highlight the role of investment firms in the company's history and the deal.
Financials
- $53.2 million – Total acquisition value of Act-On Software by Banzai.
- $33.2 million – Portion of the acquisition paid in common stock shares.
- $20 million – Cash consideration portion of the acquisition.
- $100 million – Investment agreement with Yorkville Advisors to fund Banzai’s acquisitions.
- $82 million – Amount raised by Act-On from various investors.
- $27 million – Projected revenue increase for Banzai following the acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Banzai International | Bidding Company | Company | A Seattle-based marketing technology company, Banzai is acquiring Act-On Software to expand its product offerings. |
| Act-On Software | Target Company | Company | A Portland-based company providing marketing automation software, being acquired by Banzai. |
| Voyager Capital | Investor | Company | A venture capital firm that backed Act-On and sees the acquisition as a successful exit. |
| Joe Davy | CEO of Banzai | Person | CEO of Banzai, discussing the acquisition's strategic fit with the company’s vision. |
| Kate Johnson | Departing CEO of Act-On | Person | CEO of Act-On, who will leave the company following the acquisition. |
| Yorkville Advisors | Investment Partner | Company | Provides an investment agreement to help fund Banzai’s acquisitions, including Act-On. |
| Raghu Raghavan | Founder | Person | Founder of Act-On Software, who stepped down as chairman and CEO in 2015. |
| U.S. Venture Partners | Investor | Company | A venture capital firm that invested in Act-On. |
| Technology Crossover Ventures | Investor | Company | A venture capital firm that invested in Act-On. |
| Norwest Venture Partners | Investor | Company | A venture capital firm that invested in Act-On. |
| Beedie Capital | Investor | Company | A venture capital firm that invested in Act-On. |