LiveRamp Buys Clean Room Specialist Habu

Data sharing and activation platform LiveRamp has agreed to acquire clean room software provider Habu, for cash and stock totalling around $200m. LiveRamp says the deal will 'unlock powerful measurement and analytics use cases' as well as more generally enhancing its collaboration offer.

Habu's technology is used by global companies and media groups to securely share first-party customer data with business partners and publishers, for uses such as targeting and personalization. Following the deal the combined company aims to help clients move data out of silos and leave it interoperable across 'all clouds, walled gardens and clean room environments while maintaining privacy and governance protocols'.

The addition of Habu also promises new customers and cross-selling opportunities and greater global coverage. The Habu team joining LiveRamp will report to Chief Revenue Officer Vihan Sharma. Both companies are headquartered in San Francisco.

The buy is expected to add around $18m in revenue in FY25, with the transaction completed in LiveRamp's fiscal fourth quarter, which ends 31st March. The firm also announced preliminary results today for Q3, ended December 31st, with revenue and operating income results significantly exceeding guidance, according to CFO Lauren Dillard. Revenue will be c.$174m, up 10%, and operating income at $15m is nearly double analysts' expectations..

Habu CEO Matt Kilmartin says of the deal: 'LiveRamp and Habu approached the data collaboration market with two complementary strategies that share the common goal of creating the largest data collaboration network rooted in privacy'. LiveRamp CEO Scott Howe (pictured) adds: 'Through this acquisition, we will further empower our customers to unlock insights, use cases, and revenue streams by seamlessly connecting data and deepening measurement, across any platform or partner they prefer'.

The firms are online at www.liveramp.com and www.habu.com .