Salesforce has agreed to acquire Datorama for a reported $800m in a bid to further insights available to brands via its marketing could in the latest round of M&A in the adtech and martech sector.
The purchase amount was not officially disclosed, but local media reports citing sources familiar with the deal claim that Israel-based Datorama will sell for $800m as Salesforce attempts to ramp-up competition with rival marketing cloud providers such as Adobe and Oracle.
Rang Sarig, Datorama chief executive officer, first made the announcement on a company blog post where he explained that the tie-up was geared towards helping marketers “gain insight from one single source of data”.
Datorama provides brands, agencies and publishers with an AI-powered marketing intelligence and analytics platform with household names including PepsiCo, Ticketmaster, Trivago, Unilever, and Pernod Ricard on its client roster.
“Salesforce’s acquisition of Datorama will enhance Salesforce’s Marketing Cloud with expanded data integration, intelligence and analytics, enabling marketers to unlock insights across Salesforce data and the myriad of technologies used in today’s marketing and consumer engagement ecosystem,” reads Sarig’s post.
“With one unified view of data and insights, companies can make smarter decisions across the entire customer journey and optimize engagement at scale.”
Founded in 2012, Tel Aviv-based Datorama has raised $50m, and has between 250 and 500 employees, according to its Crunchbase profile, with the reported $800m exit representing the yet another high-profile purchase in the space in recent months.
Earlier this month, IPG announced it has entered into a definitive agreement with Acxiom in a cash transaction valued at $2.3bn. This followed last month’s purchase of adtech outfit AppNexus by US-based telco AT&T in a deal reportedly worth $2bn.
Meanwhile earlier this year rival data marketing cloud provider Oracle made two purchases with the buyout of Datascience.com quickly following its acquisition of contextual advertising outfit Grapeshot.
Speaking with The Drum in the immediate aftermath of the earlier regulatory approval of AT&T’s takeover of Time Warner (which has since been appealed by the Department of Justice), experts tipped a flood of more M&A. Terence Kawaja, chief executive of investment bank Luma Partners, noted that there is currently more than $300bn in pending deals in the adtech and martech sector.