Taboola, the content recommendation company, announced it has completed the acquisition of Connexity. The total consideration of the transaction is $800 million consisting of approximately $590 million in cash and $210 million in Taboola stock.
Connexity is one of the largest independent e-Commerce media platforms in the open web, and the acquisition brings 1,600 direct merchants, and 6,000 publishers including Walmart, Wayfair, Skechers, Macy’s, eBay to Taboola. The acquisition will enable merchants and advertisers to reach new clients through Taboola on the open web and an alternative to the industry’s walled gardens. Adam Singolda, CEO and founder of Taboola, said,
Ecommerce is the future of the open web, consumers will be buying outside of Amazon, on publishers’ sites next to trusted editorial content a lot more than they are today. Amazon has millions of merchants, but merchants mainly have Amazon. That changes today. Combining Taboola and Connexity’s technologies is one step forward in creating an alternative to walled gardens
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Taboola and Connexity are uniquely positioned to drive growth and diversify their revenue mix as well as helping merchants and advertisers- all capitalizing on the significant growth potential. Adam Singolda explained,
At a time when, according to eMarketer, over 60% of U.S. publishers are turning to e-commerce as a top revenue source, I believe every publisher is going to develop an e-commerce strategy. With Taboola and Connexity, publishers will get instant access to an innovative technology connecting readers with products, which capitalizes on where consumers spend a large part of their day–reading trusted news online
Another benefit to merchants and advertisers would be Taboola offering Connexity e-commerce solutions across the former’s vast network of more than 9,000 digital properties that reach 500 million daily active users. With Connexity’s offering integrated with Taboola’s network, publishers will have a new way to drive revenues, It will scale up customer acquisition by placing products on the stories that consumers are reading.
Connexity Solutions For Publishers And Merchants
–Publisher Network: Connexity core technology powers customer acquisition for merchants like Walmart, Skechers, or Michael Kors on the open web via its extensive publishers’ network and custom-built search platform integrations. Connexity enables more than 750 million product offerings on its shopping intent network, driving more than 1 million monthly transactions for its advertisers.
–Social Influencers: Merchants can reach out to social influencers. Brands like Forever 21, and Wayfair leverage this opportunity to drive customer engagement when social influencers promote their products on their social media post.
– Shopping Section: Connexity allows publishers to build their own shopping section using contextual signals. Brands like CNET and Brand Reviews are using this offering to build their own customized eCommerce section and connect buyers to the products they love.
– Commerce Content Platform: This enables publishers to integrate their products automatically into their editorial content, which will give the readers an opportunity to instantly buy products based on the article they are reading. Publishers including Condé Nast, Hello! Magazine, and News Corp Australia to name a few, are scaling their e-commerce business.
Recent acquisition deals also signal the maturation of ad tech with the rapid public listing of companies and using the resulting funds to grow in an inorganic way.