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Zeta Global Acquires Boomtrain For Personalization Technologies

Jul. 19, 2017 2:09 PM ETZeta Global Holdings Corp. (ZETA)

Summary

  • Marketing technology 'unicorn' Zeta Global has acquired Boomtrain for an undisclosed sum.
  • Boomtrain has developed marketing personalization capabilities using machine learning and AI-derived technologies.
  • The technology will power the marketing personalization engine within ZetaHub, Zeta's flagship platform for digital marketers.

Quick Take

Advertising technology ‘unicorn’ Zeta Global (NYSE:ZETA) has acquired mobile messaging personalization company Boomtrain for an undisclosed amount.

Boomtrain has developed machine learning- and AI-driven marketing system for brand marketers to more effectively manage their messaging campaigns with consumers.

Zeta is executing on its business plan of smartly acquiring the technologies to power its cloud-based suite of digital marketing solutions.

Target Company

San Francisco-based Boomtrain was founded in 2012 to create a platform to assist brand marketers to more efficiently communicate with prospects and customers using its four main functional feature sets:

  • Content Personalization
  • Product Recommendation
  • Omnichannel Marketing
  • Prime Time Messaging

The company was co-founded by CTO Chris Monberg, who will become CTO at Zeta Global.

Below is a brief demo video about Boomtrain’s approach:

(Source: Boomtrain)

Boomtrain has divided its solution into six separate products, all of which are powered by its algorithm engine:

  • Marketing Automation
  • Onsite Recommendation
  • Email Marketing
  • Mobile Push
  • Messenger
  • Lightbox

Furthermore, it has customized its offerings for the Media & Publishing and Retail verticals.

Investors in Boomtrain invested nearly $15 million in disclosed funding and included venture capital firms Sierra Ventures, Crosslink Capital, Lerer Hippeau Ventures, Cota Capital, Streamlined Ventures, and others.

Acquisition Terms and Rationale

Neither company disclosed the amount or terms of the transaction.

Given Zeta’s recent fundraise of $140 million and its preference for ‘team and tech’ acquisitions, the purchase price was likely below $50 million, although estimating private company transaction amounts is difficult. What could push the deal price higher would be how much Zeta wanted Boomtrain’s machine learning technology for its personalization engine.

I previously wrote about Zeta Global’s financing round in my article, Zeta Global Raises $140 Million For Acquisitions.

In that April 2017 piece, I interviewed Zeta Global CEO David Steinberg on the company’s prospects and

This article was written by

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