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Banzai CEO Joe Davy. (Banzai Photo)
Seattle-based marketing technology company Banzai International plans to acquire Act-On Software, a Portland, Ore.-based company that sells marketing automation software.
Founded in 2008, Act-On offers an array of marketing services that help companies boost demand generation and consumer marketing efforts. Customers include Hitachi, Best Buy, and Progressive Insurance.
Joe Davy, CEO at Banzai, told GeekWire that the deal will provide his company with infrastructure that ties Banzai’s various offerings together. He called Act-On “the most advanced marketing automation product in the market right now.”
“We’ve got a bunch of spokes right now, and this is a real hub type of product,” he added.
The acquisition is valued at $53.2 million, which includes $33.2 million in common stock shares and cash consideration of $20 million.
Banzai, which went public in 2023 on the Nasdaq, said the deal is projected to increase its revenue by $27 million for the 12-month period ending Dec. 31.
Act-On raised more than $82 million.
The acquisition was a good outcome for Voyager Capital, according to Diane Fraiman, managing director at Voyager, which backed Act-On. She said the company went through a recapitalization when it raised $20 million in 2021.
Act-On Software CEO Kate Johnson. (Act-On Software Photo)
Other backers include U.S. Venture Partners (USVP), Technology Crossover Ventures (TCV), Norwest Venture Partners, and Beedie Capital. Longtime technology industry veteran Raghu Raghavan founded Act-On and stepped down as chairman and CEO in 2015.
Act-On has more than 100 employees and most will join Banzai as part of the acquisition, though Kate Johnson, the company’s CEO, will depart.
This marks the third acquisition in the past two months for Banzai.
Last month Banzai acquired OpenReel, a digital video creation platform for businesses, in a deal valued at $19.6 million. It also announced the planned acquisition of Vidello, a video hosting and marketing technology provider for businesses, for up to $7 million.
Davy said the company has a $100 million investment agreement with Yorkville Advisors that can help fund Banzai’s deals.
Founded by former Avalara employees in 2016, Banzai originally started as an on-demand inside sales and marketing platform. Banzai now provides marketing tools to help companies create content, run virtual events, and more.
Davy said the vision for Banzai in 2025 is to build a platform of “AI-enabled marketing technology solutions that make customers’ lives simpler and easier.”
As of Sept. 30, Banzai reported annual recurring revenue of $4.4 million, up 7% sequentially from the second quarter, and an adjusted net loss of $1.45 million, an improvement of $3 million on the same basis.
The company had $4.3 million in cash as of Sept. 30.
