Marin Software, the cross-platform ad platform, is expanding deeper into social advertising in a big way. On the heels of reporting sales of $27 million for Q4 but also a net loss of $33.2 million, and $0.97 per share, the company has announced that it will be acquiring France’s SocialMoov, an early mover and big player in social advertising on sites like Facebook (specifically video) and Twitter, as well as TV-synchronised ads.
Marin will be paying initially $18.75 million for the company — $8 million in cash and $10.75 million in Marin stock, plus up to $2 million in equity to employees after closing. Marin tells me that all 40 employees of SocialMoov will be offered positions at Marin as part of the deal.
The idea here is to expand into social across both web and mobile, but also to provide tools to advertisers who are wanting to link up their ads with corresponding campaigns on more traditional mediums like TV. The company’s revenue growth is up 24% and beat analyst expectations by about $1 million, but it also reported an overall net loss, narrowed by slightly more than $2 million compared to last year.
Marin — which went public in 2013 — is demonstrating its intention to grow its platform and also its international presence.
“Social is the fastest growing segment in online advertising and is essential for both brand and performance marketers,” said David A. Yovanno, CEO of Marin Software, in a statement. “Once the transaction is complete, I believe the combination of SocialMoov and Marin Software will push our social offering to the forefront and strengthen our ability to target audiences across search, display and social channels.”
SocialMoov, founded in 2011, was Twitter’s first ad partner in Europe and one of the group of ad tech companies that links up social campaigns with TV ads. It claims to be Facebook’s biggest API partner in Europe and one of the top five in the world. Customers include Ubisoft, Lacoste, iProspect and Havas Media.
There has been some other consolidation in the space among SocialMoov’s peers in Europe. The UK’s TBG Digital was acquired by Sprinklr last year. And Twitter acquired two social TV ad specialists in the UK and France, SecondSync and Mesagraph, in March 2014.
“I believe the combination of our technology with Marin Software will offer advertisers a greater return on their ad spend and new performance marketing opportunities,” said Veronique Bergeot, co-founder and General Manager at SocialMoov in a statement.
This is Marin’s second acquisition after it acquired social retargeting startup Perfect Audience in 2014.
SocialMoov’s investors are making a great return on the company, which had raised less than $1 million in the last four years.