Scoop: Hightouch offers Publicis up to $1.2B for key LiveRamp assets
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Hightouch, an ad tech startup recently valued at $2.75 billion, has offered to buy LiveRamp's identity business from ad holding group Publicis for $800 million–$1.2 billion in cash and stock, according to a letter sent to Publicis' board last week and obtained by Axios.
Why it matters: A fast-growing ad tech startup is trying to convince Publicis to sell off a significant part of LiveRamp before the ink is even dry on its acquisition.
- Publicis last month announced a $2.2 billion all-cash deal to take LiveRamp private, marking one of the biggest ad tech acquisition agreements since Publicis bought Epsilon in 2019.
The big picture: Hightouch's proposal reflects concerns across the advertising industry about Publicis owning infrastructure that many agencies, brands and technology providers rely on.
- Almost immediately after Publicis announced the LiveRamp deal, rival agencies and some analysts questioned whether advertisers would start looking more aggressively for alternatives.
- Publicis did not immediately respond to a request for comment.
State of play: Hightouch is interested in LiveRamp's identity and data onboarding businesses such as RampID and LiveRamp Connect.
- The offer amount is based on publicly available information, the letter said, adding Hightouch's final offer may be subject to adjustment after it completes due diligence on a possible deal.
- The transaction would be financed through a combination of cash, debt financing and Hightouch equity, according to the letter.
- The company said it is prepared to move quickly through due diligence and complete a transaction if Publicis is interested.
Zoom out: Founded in 2019, Hightouch has quickly become one of the fastest-growing agentic marketing startups in the U.S.
- In April, the company raised a $150 million Series D, led by Goldman Sachs and Bain Capital Ventures, at a $2.75 billion valuation.
- The firm helps brands build customer data profiles in conjunction with their cloud data providers, such as Snowflake or Databricks. LiveRamp's assets could help it scale to a much wider customer base.
What to watch: Hightouch says it will withdraw its proposal if it doesn't receive a response from Publicis by June 26.
