IDI, Inc. (IDI) Completes Cash and Stock Acquisition of FluentDecember 10, 2015 | By Fluent
Publication date 12/9/15
IDI, Inc. (NYSE: IDI) announced that it has completed its acquisition of New York-based Fluent, Inc. The transaction was funded with $100 million in cash and 15,000,000 shares of IDI common stock.
A leader in people-based digital marketing and customer acquisition, Fluent has served over 500 leading brands and direct marketers, experiencing 100% YOY revenue growth from 2014-2015. The combined entity is expected to be cash flow positive from day one, with Fluent posting approximately $126 million in revenue and approximately $20 million in EBITDA over trailing twelve months through Q3 2015.
Derek Dubner, Co-CEO of IDI, stated, “The acquisition of Fluent is transformative, placing IDI in an enviable position of leveraging our advanced data analytics in support of multiple industries. While our team has built the leading organizations within the multi-billion dollar risk management space, our goal has been to apply our technology to consumer marketing, opening up our addressable market by orders of magnitude. Fluent’s business, management, and employees are now a vital piece of IDI’s growth and we believe this acquisition provides significant value for our shareholders.”
Ryan Schulke, CEO of Fluent, added, “While this acquisition serves as further confirmation of Fluent’s success in driving exceptional value and ROI within the digital marketing space, we believe joining the IDI family opens up an exciting new chapter for our business. We feel IDI’s data fusion and big data analytics will greatly accelerate growth, creating a truly differentiated company within the industry.”
IDI also announced the closing of its related debt financing with H.I.G. WhiteHorse and Dr. Phillip Frost’s $47 million investment in support of the cash component of the transaction. Additionally, Dr. Frost, current Chairman and CEO of OPKO Health (NYSE: OPK), has joined IDI’s Board of Directors as Vice Chairman. Further, Ryan Schulke will join the IDI Board of Directors, as well as Donald H. Mathis, current CEO and Co-Founder of Kinetic Social, a social data and marketing technology company. Mr. Mathis will serve as an Independent Director of the Board and serve on the Audit Committee and the Compensation Committee.
Dr. Frost stated, “This acquisition is a major milestone for IDI and represents the Company’s, and my own, continued commitment to its growth strategy. We are pleased with our new relationship with H.I.G. WhiteHorse. In addition to their support in financing the acquisition, their team lends significant market expertise to further power IDI’s growth.”