Rokt acquires customer data platform mParticle for $300 million

Ecommerce marketing company Rokt announced the acquisition of customer data platform (CDP) mParticle for $300 million. The deal, which Rokt refers to as a merger, marks a strategic move to integrate real-time data capabilities into ecommerce transactions, advertising, and customer engagement.

Rokt CEO Bruce Buchanan emphasized the impact of this acquisition, noting that brands using both Rokt and mParticle have seen performance improvements of up to 50% compared to other solutions. The move is expected to enhance Rokt’s offerings beyond its core focus on advertising, which currently contributes to a minority of its revenue. Instead, the focus will be on leveraging mParticle’s real-time data capabilities to improve customer retention, loyalty programs, and upselling opportunities.

mParticle CEO Michael Katz echoed this sentiment, highlighting that the partnership allows for more seamless integration of customer data to drive meaningful business outcomes. Katz and the other mParticle founders will maintain active roles within the combined company, with Katz continuing as mParticle’s CEO and Andrew Katz transitioning to Chief Technology Officer of Rokt.

Rokt’s decision to invest heavily in mParticle may come as a surprise to some, given the company’s previous focus on optimizing post-purchase moments for enterprise retailers. However, the acquisition aligns with Rokt’s broader vision of unlocking real-time relevance during critical transaction moments. The company’s ability to process data instantaneously between purchase confirmation and checkout page loading is enhanced by mParticle’s real-time data streams.

With mParticle’s tools, Rokt gains the ability to not only drive transactional relevance but also expand its capabilities into retention marketing and customer loyalty initiatives. This represents a shift in how both companies operate, moving closer to the “value creation layer” in ecommerce.

The merger comes during a period of significant growth for Rokt. The company has reported a 40% year-over-year revenue increase, reaching $600 million in annual revenue. Recent initiatives, such as the acquisition of AfterSell and the launch of its generative AI tool ACE, underscore Rokt’s commitment to innovation.

Both companies have also reaffirmed their dedication to data privacy and compliance, ensuring that clients maintain full control over their first-party data assets. This focus on privacy is likely to resonate with brands seeking to navigate an increasingly complex data landscape.