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Rokt agrees to acquire AfterSell and updates IPO plans

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Illustration: Rebecca Zisser/Axios

E-commerce tech company Rokt agreed to acquire AfterSell and its Shopify upsell app, CEO Bruce Buchanan tells Axios exclusively.

Driving the news: Rokt continues to scale and make acquisitions as it prepares for an IPO.

Details: While the deal's valuation was not disclosed, it was a combination of cash and equity, Buchanan and AfterSell co-founder Dhruv Patel tell Axios.

  • Expected to close on Feb. 1, the transaction resulted from a nine-month exploratory period for AfterSell and three months for Rokt and Aftersell to get acquainted.
  • AfterSell also looked at raising money and other acquisition paths, Patel says.

Meanwhile, though Rokt planned to be IPO-ready by the end of 2023, the company "will not IPO in the first half of this year," Buchanan says.

  • "Notably, at the end of last year we completed a major milestone in prep by [redomiciling] our headquarters into the U.S.," he says, noting IPO timing is subject to market conditions.

By the numbers: Rokt generated revenue of $336 million for fiscal 2023, remains profitable, and will invest over $100 million back into its business, Buchanan says.

Zoom in: Founded in 2019, AfterSell helps Shopify merchants create a cart, checkout, and post-purchase experience to upsell and cross-sell.

  • Its customers include Good American, KitchenAid, HexClad, the Miami Heat and Bloom Nutrition.
  • The addition of AfterSell will strengthen Rokt's small and medium-sized business offering, expanding the number of clients to more than 20,000.

What they're saying: "For Rokt's enterprise clients it gives us the ability to fill in some of the missing gaps that are important in driving some of the overall economics in terms of the UX options, the thank you page and placement options," Buchanan says.

  • "We wanted to accelerate towards helping more merchants drive more value per transaction. It seemed like a natural strategic fit with Rokt," Patel says.
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