Contact: Scott Denne
[x+1] looks set to be the next audience data manager to find a buyer. We understand that the company is nearing the end of a sale process that will likely value it above $200m.
Founded in 1999, [x+1] has been through its share of strategic shifts and name changes (Poindexter Systems, Ru4.com), though its core technology – predictive optimization for digital advertising – has been fairly consistent. Today, its core product is a data management platform (DMP) built around its optimization engine that provides marketers with a central repository to mix first-party audience data with third-party data and sync multiple marketing and advertising applications together.
Owning a DMP is an attractive option for enterprise software companies looking to deepen their marketing portfolios (Oracle and Adobe have already made moves here). One important difference, however, between [x+1] and other independent DMPs (which we profiled in a recent report) is that most of its revenue comes from customers purchasing slots for digital ads through its system. The low margins that come with media buying could make an enterprise software vendor uncomfortable with owning [x+1] or, at least, lower the multiple such a buyer would be willing to pay.
More likely, [x+1] will go to an ad-tech firm that already has similar margins and is eager to expand into other parts of the marketing stack. Rocket Fuel and Criteo would be at the top of the list as both, like [x+1], have price optimization at the core of their offering and both are flush after IPOs last year.
For more real-time information on tech M&A, follow us on Twitter @451TechMnA.