The content recommendation platform Taboola announced on Friday July 23 the acquisition of Connexity, a technology company focused on performance marketing. The announcement was made through a blog post published by Adam Singolda CEO and Founder of Taboola. The total amount of the transaction is around $ 800 million, consisting of cash and Taboola shares.
Reaching the e-commerce market more
Connexity is particularly specialized in the acquisition of customers for e-commerce sites, in particular through its relationships with publishers who can integrate product offers on their sites. Connexity is in contact with more than 1,600 merchants such as Walmart, Wayfair, Skechers, Macy’s, eBay or even Otto and 6,000 publishers such as Condé Nast, DotDash, Hearst, Vox Media, Meredithet News Corp Australia. It ensures that it can reach over 100 million unique buyers per month.
With this acquisition Taboola hopes to gain more share in the e-commerce market in the United States, estimated at more than 35 billion dollars according to eMarketer. New types of advertisers will be able to connect to Taboola’s global audience of 500 million daily active users. “Publishers have a new way to significantly increase their revenues by exploiting e-commerce recommendations”, said the founder of Taboola.
Offer an alternative to Amazon
The acquisition of Connexity is part of the growth strategy “Recommend Anything“from Taboola, which aims to introduce new types of recommendations and penetrate new segments.”Consumers will buy outside of Amazon, on publisher sites, alongside trusted editorial content, much more than they do today. Amazon has millions of merchants, but merchants mostly have Amazon. This is changing today“, wrote Adam Singolda.
This transaction is Taboola’s fifth acquisition and adds more than 200 people to its team, bringing the total number of employees to approximately 1,600. Bill Glass, CEO of Connexity, and the Connexity management team will lead the new business unit by Taboola. Earlier this year, Taboola announced its listing on the New York Stock Exchange through a merger with SPAC Ion Acquisition Corp. Among its announced future ambitions, the company has indicated that it wants to invest in research on artificial intelligence.