N.Y.C. digital marketing firm Fluent bought by Florida tech companyDecember 10, 2015 | By Fluent
Publication date 12/10/15
IDI Inc. said it closed the acquisition of a digital marketing company and attracted a $47 million investment from Miami Beach billionaire Dr. Phillip Frost and H.I.G. WhiteHorse.
The Boca Raton-based company (NYSE: IDI), an information and database research company, paid $100 million in cash and 15 million shares for New York-based Fluent. Shares of IDI were up 10.4 percent to $9.33 on Wednesday.
The company said Fluent posted $126 million in revenue and $20 million in earnings before interest, taxes, depreciation and amortization in the 12 months ended Sept. 30.
“The acquisition of Fluent is transformative, placing IDI in an enviable position of leveraging our advanced data analytics in support of multiple industries,” said IDI Co-CEO Derek Dubner. “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.”
IDI said that Frost, the chairman and CEO of Opko Health (NYSE: OPK) and a longtime entrepreneur, has joined its board as vice chairman. It also welcomed Kinetic Social Co-Founder Donald H. Mathis and Fluent CEO Ryan Schulke to its board.
“This acquisition is a major milestone for IDI and represents the Company’s, and my own, continued commitment to its growth strategy,” Frost said. “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.”
The new capital enabled IDI to make the acquisition. In the first nine months of 2015, IDI had revenue of $3.35 million and a net loss of $51.9 million, although $42.5 million of the loss came from discontinued operations.
Dubner previously worked with the late Hank Asher, who created Seisint and TLO. In 2013, Frost tried to take over TLO in bankruptcy court.