Today, ZetaInteractive, was purchased by two individual organizations, both distinctively different. One company PMDigital, is a full service Digital Markeitng Agency that specializes in Paid Search, SEO, Social and Shopping Cart Management. For full disclosure, PM purchased the business services side of Zeta, which includes but not limited to SEM, SEO, Brand Strategy, Website Development, Display and more. PMDigital has offices in NY, California, South Carolina and Arizona.
The other company, Caivis Acqusition Corporation purchased the organizational structure of the company and Zeta’s Email Platform. Among ESPs Zeta is formidable and well respected. They send close to 1 Billion emails per month, for clients, who are in a variety of verticals. Caivis’ strategy is distinct. It is to acquire and combine disparate digital marketing companies into one common business. This is a sound strategy for our industry, since our industry is spiked with organizational imbalances. Working as one team, Zeta’s organization is more valuable than the underlying companies allowing entrepreneurs to focus on its core business operations while teaming with Caivis to gain market intelligence, industry expertise, diversification, and access to capital. There is a lesson to be learned here for young venture capitalists, who seek a strategic competitive advantage, when targeting companies.
In our industry, ESPs and successful digital agencies face imbalances and organizational discord all the time. It’s part of being in business. It’s natural to focus on your core strengths and pay less attention to other digital channels that are not performing optimally. For example, one agency might be a focus heavily on social media and are wildly successful, but lack structure in other digital platforms like the ability to scale with their email infrastructure. It’s challenging for an agency to hit on all cylinders. The goal of Caivis is to find companies and invest in their strengths, then combine. Zeta’s strength in their email platform could be a perfect match for an agency who has developed social well. The intriguing part about this, is that there are hundreds of digital service combinations for which Caivis can be successful at, and having email and the data associated, as a common denominator helps their overall investment strategy.
Terms of the deal were not disclosed. Here is the full press release.
Full Disclosure: Zeta Interactive is a client of Port25 Solutions, Inc.