IDI Inc. acquires the digital marketing and customer acquisition company FluentNovember 17, 2015 | By Fluent
Publication date 11/17/15
Ryan Schalke, CEO, and Matt Conlin, President, co-founded Fluent in 2010, and will remain in their executive roles post-acquisition, with Schalke joining IDI’s Board
BOCA RATON, Fla.– November 17, 2015 — IDI, Inc., an information solutions provider, today announced that it has entered into a definitive agreement to acquire New York-basedFluent, Inc. for $100 million in cash and 15,000,000 shares of common stock. Fluent will be a wholly-owned subsidiary of IDI.
- Fluent is a leader in people-based digital marketing and customer acquisition
- Over 100% YOY revenue growth 2014-2015
- IDI’s big data analytics provide immediate synergies to Fluent’s business model
- Combined company will be cash flow positive from day one
- Dr. Phillip Frost to invest $40 million in preferred stock as financing for the transaction and will join IDI Board of Directors as Vice Chairman at closing
The acquisition is expected to be transformational for IDI, accelerating the Company’s strategy to apply its next generation data fusion technology to not only the risk management industry, but also as an advanced data analytics platform, empowering advertisers to significantly enhance customer targeting and profiling.
Michael Brauser, Executive Chairman of IDI, stated, “We’ve consistently outlined our roadmap of addressing three complementary markets with our proprietary technology; risk management, marketing, and custom analytics. As we advance our development of core solutions for the risk management industry, we believe the timing is right to accelerate our growth plan into the consumer marketing industry.”
Derek Dubner, Co-CEO of IDI added, “We believe that combining IDI’s data fusion technology and experience with Fluent’s proven execution and leadership within the people-based marketing space will accelerate our growth, provide opportunities previously unavailable to each separately, and significantly increase value for our shareholders.”
Fluent is a leader in people-based digital marketing and customer acquisition, serving over 500 leading brands and direct marketers. Leveraging a massive reservoir of proprietary audience data, as well as millions of real-time survey interactions with consumers every day, Fluent enables advertisers to more effectively target and acquire their most valuable customers, with precision, at a massive scale. An early mover in the mobile trend, Fluent is well positioned in the marketplace with more than 70% of consumer interactions occurring on mobile devices.
In addition to real-time targeting and delivery of consumers to advertisers, Fluent has amassed significant owned data assets consisting of over 100 million comprehensive profiles of U.S. consumers. Unique to Fluent, these assets include billions of self-reported consumer preferences and interests.
Ryan Schulke (CEO of Fluent) and Matt Conlin (President of Fluent) co-founded Fluent in 2010, leveraging their extensive experience in digital marketing. Mr. Schulke and Mr. Conlin will remain in their executive roles post-acquisition, with Mr. Schulke joining IDI’s Board of Directors at closing.
“We consider this to be a landmark moment for our company,” said Mr. Schulke. “Fluent has emerged as one of the marketing industry’s most trusted partners to brands who are looking to drive scale and performance from their digital advertising spending. The ability to further bolster our solutions and first party data with the big data analytics and experience of IDI will create a truly differentiated company that drives exceptional value and ROI for brands.”
The combined entity will employ over 110 people with offices in New York, Seattle, Washington D.C., Atlanta, and Boca Raton.
IDI expects to finance the transaction using debt and equity, including Dr. Frost’s $40 million investment and through the issuance of preferred stock to the stockholders of Fluent.
Fluent was exclusively represented by investment bank Petsky Prunier Securities in this transaction.
The transaction is expected to close on or before December 1, 2015, but closing may be extended to December 15, 2015.