Sizmek to Buy Rocket Fuel for $145m

In the US, data activation platform Sizmek is to acquire predictive marketing software company Rocket Fuel for approximately $145m.

Redwood City, California-based Rocket Fuel uses artificial intelligence to anticipate people's needs for products and services. Its platform includes data management, programmatic media-buying, site optimization and predictive analytics capabilities across paid and owned channels. Last year, the company opened the Rocket Fuel Institute (RFI) to tap into its roughly 65 petabytes of behavioural marketing data, and find answers to digital marketing issues. The firm has more than twenty offices worldwide, including one recently opened in Prague, Czech Republic.

Under the terms of the agreement, an affiliate of Sizmek, backed by Vector Capital, will offer $2.60 per share in cash for all Rocket Fuel's outstanding shares. Stockholders holding around 24% of Rocket Fuel's common stock have entered into a tender and support agreement with Sizmek.

The amount paid is considerably less than the $230m Rocket Fuel itself shelled out three years ago for ad targeting firm [x+1]. At the time, Rocket Fuel reported second quarter revenue up 70% year-on-year to $92.6m.

Rocket Fuel CEO Randy Wootton (pictured) comments: '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 transaction accelerates our global expansion efforts in more than 70 countries, which empowers us to provide agencies and brands with more tools, exceptional service and support worldwide'.

Web site: www.sizmek.com and www.rocketfuel.com .