LiveRamp, an identity resolution specialist, this morning announced it will acquire Habu, a data clean room provider, for $200 million. The deal comprises $170 million in cash and $30 million in LiveRamp stock. It is scheduled to close during the March quarter.
Since being founded in 2018, Habu’s clean room technology has been embraced by the advertising industry for its ability to maintain user data privacy when pairing up datasets, across different cloud environments and data platforms. Integrating the technology into LiveRamp’s offering is expected to simplify the use of data across its network of clients, which includes Walmart, PepsiCo and DISH Media.
Habu meanwhile counts Asics and PepsiCo among its clients. The company has raised $42 million from investors, including Wing Venture Capital and Snowflake Ventures. The flexibility of the software is said to provide a boost to LiveRamp from an interoperability perspective. LiveRamp CEO Scott Howe said clients have been looking to use fewer tools when collaborating with data partners.
“Habu is well known in the industry for building a really simple lightweight application layer that makes data even easier to use,” Howe said in a recent interview. “We are going to ingest that and adopt it across our much larger client base and make things even easier for them to utilise.”
Under the terms of the deal, 50 employees will join LiveRamp, reporting to CRO Vihan Sharma.
“LiveRamp and Habu approached the data collaboration market with two complementary strategies that share the common goal of creating the largest data collaboration network rooted in privacy,” said Habu CEO Matt Kilmartin. “As we look ahead to our next chapter as part of LiveRamp, we’re as committed as ever to our mission of paving the way for the next frontier of responsible data collaboration.”
Ramping up to a cookieless future
The deal marks a significant investment for Liveramp, which was itself seeking a buyer as recently as late 2022. The company’s stock price tumbled in the fourth quarter, and multinational credit firm Experian was thought to be interested in an acquisition. But LiveRamp stock has recovered in recent months, and discussions put on the back burner.
“LiveRamp enables next-generation data collaboration that delivers unmatched brand and business value. Through this acquisition, we will further empower our customers to unlock insights, use cases, and revenue streams by seamlessly connecting data and deepening measurement, across any platform or partner they prefer,” said LiveRamp’s Howe. “Habu shares our vision, and together, we will help more global enterprises benefit from the transformative power of data collaboration.”
Evercore and Baker McKenzie advised on the deal for LiveRamp, alongside Goldman Sachs and Gunderson Dettmer for Habu.
