Rocket Fuel is buying data technology platform [x+1] in a deal that is worth about $200 million. Rocket Fuel also announced quarterly results today, generating $92.6 million in revenue, up 70 percent from last year's second quarter.
"We will be able to offer our customers a comprehensive platform to more easily leverage their growing digital data assets," Rocket Fuel CEO George John said in a statement today.
Rocket Fuel is paying $100 million in cash and $5.4 million in shares for the acquisition. After the stock price fell almost 25 percent today, Rocket Fuel shares were valued at $19, making the overall deal worth about $200 million.
A rep for Rocket Fuel said that the company is now better positioned to compete in the marketing cloud category, which includes big names such as Oracle, Salesforce and Adobe as well as newcomers like Sprinklr.
"[x+1] will broaden Rocket Fuel's customer base from agencies to also include direct customer relationships," the rep said in an e-mailed statement.
Intuit, Discover, Allstate and Nissan are among [x+1]'s clients.
[x+1] is expected to contribute up to $22 million in revenue to Rocket Fuel by the end of the year. For its core business, Rocket Fuel lowered expectations for full-year revenue, predicting up to $405 million instead of its previous forecast of up to $435 million, the company said in its announcement to investors today.