Call Neustar's acquisition of MarketShare a big deal — and it would still be an understatement.
Sterling, Va.-based Neustar, an ad tech provider, announced today it was buying Los Angeles-based MarketShare for $450 million. It marks one of the biggest acquisitions since the large marketing clouds started buying other smaller companies some five years ago.
Gartner ranked Neustar a "visionary" in its digital marketing hub report earlier this year.
Neustar officials said MarketShare will brings its suite a data-driven solution enabling CMOs to plan, optimize and allocate their online and offline marketing budgets. The two platforms will be combined.
MarketShare, which provides analytics and attribution, has reportedly grown 38 percent from 2011 to 2014 and generated $57 million in revenue in the 12 months ending Sept. 30.
“This transaction advances our growth strategy in the rapidly evolving $19 billion marketing data and analytics market and strengthens our position as a leading information services company,” Lisa Hook, president and CEO of Neustar, said in a statement.
“Combining Neustar’s leadership in authoritative identity, audience targeting and segmentation, and real-time media measurement with MarketShare’s market-leading technology and predictive analytics will enable CMOs to look across their entire business — from planning to execution, online and offline — to get a comprehensive and accurate reading of what is driving their sales. This will enable them to make more precise allocation decisions to achieve better returns on their investments."
Jon Vein, co-founder and co-CEO of MarketShare, called Neustar a leader in authoritative identity-based solutions. Neustar has increase its information services revenue from approximately $184 million in 2010 to $489 million in 2014, officials said.
Over the same period, Neustar’s revenue from marketing services increased from less than $3 million to approximately $147 million.
Acquisitions are increasingly common in the marketing tech space. Oracle, for instance, has steadily been picking up components for its marketing cloud through acquisitions like Eloqua (marketing automation), Responsys (email marketing), BlueKai (data management), Maxymiser (testing and targeting) and Datalogix (analytics). Salesforce has made similar marketing tech acquisitions (ExactTarget), and IBM (Silverpop) and Adobe (Neolane) certainly have not done all their innovation in-house, either.