Enterprise data, analytics and software-as-a-service company
) proposed acquisition of LiveRamp was granted an early termination
of the waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976. The news failed to garner any reaction
from shareholders as stock prices remained flat.
The Hart-Scott-Rodino Antitrust Improvements Act of 1976 is a U.S.
federal statute that prevents the conclusion of a merger
transaction until it ensures that the deal would not hurt fair
competition in the market. With the early expiry of the customary
waiting period under the Act, the transaction is free to proceed
further. However, the $310 million deal, announced on May 14, still
remains subject to customary closing conditions.
With this acquisition, Acxiom intends to bridge the gap between
offline databases and online marketing applications with better
connectivity and faster onboarding. This will, in turn, improve its
technology platform by providing secure access to more data.
By leveraging LiveRamp's extensive network and a rich clientele
that includes some of the world's leading brands in retail,
entertainment, communications and financial services, Acxiom
expects to strengthen its customer pool and venture into a
potentially profitable area of digital advertising.
Acxiom and LiveRamp collectively have dealings with over 7000
customers globally. Their combined industry-leading capabilities
will enable their marketing network to reach over 99% of the adult
U.S. population with targeted advertising across all channels and
Acxiom and LiveRamp intend to expand this capability on a global
scale over the next year, particularly in Europe and the
It is notable that Acxiom's share price has fallen about 18% since
the announcement of LiveRamp acquisition. Some analysts opine that
investors might be judging the deal as too expensive and dilutive
to earnings. Moreover, Acxiom's guidance for fiscal 2015 was
disappointing, with an expected decline in both revenues and
Acxiom currently holds a Zacks Rank #3 (Hold). Some better-ranked
Barracuda Networks, Inc
EPAM Systems, Inc
), each carrying a Zacks Rank #2 (Buy).
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