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LiveRamp to Buy Data Plus Math for $150M

LiveRamp said it will buy measurement company Data Plus Math in a cash and stock deal valued at $150 million.

In the deal, reported earlier by the Wall Street Journal, publicly owned LiveRamp will pay $120 million in cash upfront and $30 million in stock over time for Data Plus Math. The deal is expected to help LiveRamp, which matches customer data with advertisers and brands, better help its clients target ads for its clients on streaming and traditional TV.

Data Plus Math works with brands, agencies, cable operators streaming services and networks to determine who is watching their ads and tie it to other consumer behavior data.

“While TV continues to be the most engaging screen in the household, the landscape is shifting,” LiveRamp CEO Scott Howe said in a press release. “Data and technology have transformed the relationship a brand can have with its consumer on TV, creating tremendous opportunities to improve how TV inventory is bought, sold and measured. We are excited for Data Plus Math to join the LiveRamp family and look forward to working closely with its deeply experienced team of industry experts. Together, we will accelerate LiveRamp’s TV efforts and offerings and unlock the amazing power of data-driven TV for the entire ecosystem.”

The deal is expected to close in LiveRamp’s fiscal second quarter.

“This is an exciting acquisition for LiveRamp,” said GroupM North America CEO Tim Castree in a press release. “Our clients are seeking more precise solutions for people-based, cross-platform activation and measurement. The combination of LiveRamp’s identity management capabilities and Data Plus Math’s TV attribution expertise will certainly help us accelerate that.”

Data Plus Math has had a relationship with cable programmer A+E Networks for years, and the LiveRamp deal is expected to enhance that.

“This deal will continue to help elevate the groundbreaking, foundational work that Data Plus Math and LiveRamp have already done – as neutral constituents – to bolster cross-screen measurement and outcome attribution for advertisers, agencies and media companies,” A+E Networks EVP Ad Sales Peter Olsen said in a press release.

Data Plus Math is expected to contribute approximately $5 million in revenue in fiscal 2020 and increase the combined company’s operating loss by about $8 million. In addition, LiveRamp expects the transaction to increase operating losses by approximately $27 million due to higher non-cash compensation and estimated purchased intangible asset amortization.

As a result, LiveRamp has updated its guidance for 2020 and now expects to report:

  • Revenue of $363 million to $377 million, an increase of between 27% and 32% year-over-year.
  • GAAP operating loss from continuing operations of between $192.5 million and $172.5 million. This guidance is subject to final purchase accounting adjustments.
  • Non-GAAP operating loss of between $78 million to $58 million.