MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Quotient Technology Inc. (NYSE:QUOT) today announced it has signed a definitive agreement to acquire Ahalogy1, a leading influencer marketing firm that delivers premium content across social media channels for consumer packaged goods (CPG) brands. The acquisition enhances Quotient’s performance media solutions for CPGs and retailers, adding social media expertise and a roster of proven influencers. Influencer marketing is projected to reach about $10 billion by 2020.2
“Ahalogy is a perfect fit for Quotient as we expand and grow our digital media solutions, with a specific focus on CPG shopper marketing,” said Mir Aamir, President and CEO of Quotient. “Ahalogy has proven expertise in creating and delivering targeted digital content that drives brand sales, especially through social channels. This gives us another capability to deliver efficient digital media campaigns that reach valuable shoppers, including our 100 million verified buyer audience, using our proprietary shopper data to drive sales and measure performance.”
“We couldn’t be more thrilled to join Quotient,” said Bob Gilbreath, who cofounded Ahalogy in 2012 and serves as the company’s CEO. “This is a great opportunity to bring our influencer marketing capabilities to the more than 2,000 brands within Quotient’s network, giving CPG brands and retailers a single company to manage much of their digital marketing.”
Ahalogy has developed a network of thousands of social media influencers who have strong appeal to CPG and retail brands. It uses its proprietary software, called Muse, to determine trending themes – recipes, for instance, or types of food – that are of high interest for brands. The platform also helps match influencers, who were selected based on the quality of their followers, which they verify through a third-party source, and the quality of their content. Ahalogy’s campaigns only use paid, verifiable media to spread posts, guaranteeing all impressions are real.
Quotient’s media platform, proprietary measurement solution and exclusive shopper data, will enable Ahalogy to better measure sales lift from influencer campaigns. That’s because Quotient’s Retailer iQ™ platform connects to point-of-sale systems at major retailers that sell groceries. Quotient, which powers many apps and websites for retailers, uses Retailer iQ to help brands and retailers reach shoppers with relevant digital offers and media – all informed by purchase data and online engagement data. More than 60 million shoppers – about half of all U.S. households – are registered to savings programs powered by Retailer iQ.
Gilbreath, who has more than 20 years of digital and brand marketing experience, including with Procter & Gamble and WPP, will continue to run the Ahalogy team. This acquisition also expands Quotient’s already strong commitment to Cincinnati, where the company already employs more than 120 people.
Quotient will pay approximately $20.0 million cash in upfront consideration, subject to certain adjustments at closing. Additionally, contingent consideration of up to $30.0 million in cash may become payable upon the achievement of certain financial metrics from closing through Q4 2019. The deal is expected to close in June 2018.
This press release contains forward-looking statements concerning Quotient’s current expectations and projections about future events and financial trends affecting its business, including Quotient’s current expectations regarding the completion of the acquisition of Ahalogy, the timing of doing so, the benefits to Quotient from the acquisition of Ahalogy, and the growth of influencer marketing and digital media. These forward-looking statements are based on Quotient’s current assumptions, expectations and beliefs, and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, the failure or delay in the satisfying of closing conditions to the acquisition, difficulties in integrating the Ahalogy business, and other uncertainties associated with the acquisition of a new business, competitive factors; our ability to manage our growth; and general economic conditions. Further information on these factors and other risks that may affect the business are included in Quotient’s filings with the Securities and Exchange Commission (the “SEC”), including its annual report on Form 10-K filed with the SEC on February 16, 2018. Additional information will also be set forth in Quotient’s future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that Quotient makes with the SEC. Quotient disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
About Quotient Technology Inc.
Quotient Technology Inc. (NYSE: QUOT) is a leading digital promotions, media and analytics company that delivers personalized digital coupons and ads—informed by proprietary shopper and online engagement data—to millions of shoppers daily. Our core platform, Quotient Retailer iQ™, connects to a retailer’s point-of-sale system and provides targeting and analytics for consumer packaged goods (CPG) brands and retailers. Retailer iQ powers savings programs that reach about half of all U.S. households. Our distribution network also includes our Coupons.com app and website, thousands of publishing partners and, in Europe, the Shopmium mobile app. We also operate Crisp Mobile, which creates mobile ads aimed at shoppers. We serve hundreds of CPGs, such as Clorox, Procter & Gamble, General Mills and Kellogg’s, and retailers like Albertsons Companies, CVS, Dollar General, Kroger and Walgreens. Founded in 1998, Quotient is based in Mountain View, California, and has offices across the U.S., in Bangalore, India; Paris and London. Learn more at Quotient.com, and follow us on Twitter @Quotient.
Quotient, Quotient Retailer iQ, and Shopmium are trademarks of Quotient Technology Inc. All other marks are owned by their respective owners.
1 MLW Squared, Inc. does business as Ahalogy
2 MediaKix, March 2018