Seattle marketing technology company Banzai has acquired Portland-based Act-On Software for $53.2 million. The deal includes $33.2 million in common stock shares and a $20 million cash consideration. Act-On, founded in 2008, provides marketing automation software and services to clients such as Hitachi, Best Buy, and Progressive Insurance.
The company has raised over $82 million from investors, including Voyager Capital, U.S. Venture Partners, Technology Crossover Ventures, Norwest Venture Partners, and Beedie Capital. Banzai CEO Joe Davy emphasized the strategic value of the acquisition, stating that Act-On’s advanced marketing automation technology will integrate seamlessly with Banzai’s existing offerings. We’ve got a bunch of spokes right now, and this is a real hub type of product,” Davy said.
Banzai’s Act-On acquisition boosts growth
Act-On CEO Kate Johnson will step down following the acquisition, but most of the company’s over 100 employees are expected to join Banzai. The acquisition is projected to boost Banzai’s revenue by $27 million over the next year.
Banzai, established in 2016 by former Avalara employees, offers a range of marketing tools designed to simplify and enhance customer marketing efforts, including virtual events and content creation. The company’s recent acquisitions include a digital video creation platform and a video hosting and marketing technology provider, valued at $19.6 million and $7 million, respectively. As of September 30, Banzai reported revenues of $4.4 million, a 7% increase from the previous quarter, and an adjusted net loss of $1.45 million, an improvement of $3 million.
The acquisition marks another significant step in Banzai’s growth trajectory, fueled by a $100 million investment agreement with Yorkville Advisors. Looking ahead, Davy articulated a vision for Banzai in 2025: “Our goal is to build a platform of AI-enabled marketing technology solutions that make customers’ lives simpler and easier.
The acquisition of Act-On by Banzai International highlights the ongoing growth and consolidation of marketing technology firms in the Pacific Northwest, with both companies having roots in the region.
