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What:Marketing automation giant Marketo, Inc. has entered into a definitive agreement to be acquired by private equity firm Vista Equity Partners for a total value of approximately US$1.79 billion.
Why it matters: Marketo shareholders will receive US$35.25 in cash per share, representing a 64% premium to the unaffected closing price as of May 9, 2016.

cwkQCmrQ_400x400Marketo, Inc., provider of engagement marketing software and solutions, has announced that it has entered into a definitive agreement to be acquired by Vista Equity Partners (“Vista”), a  private equity firm focused on investments in software, data and technology-enabled businesses.

The terms of this all-cash deal provide substantial value to Marketo shareholders. Vista will acquire all outstanding shares of Marketo common stock for a total value of approximately US$1.79 billion. Marketo shareholders will receive US$35.25 in cash per share, representing a 64% premium to the unaffected closing price as of May 9, 2016.

Marketo headquarters will remain in San Mateo. Closing of the deal is subject to customary closing conditions, including the approval of Marketoshareholders and antitrust approval in the United States. The transaction is expected to close in the third quarter of 2016.

Morgan Stanley is serving as financial advisor to Marketo, and Wilson Sonsini Goodrich & Rosati is serving as legal advisor to Marketo. Vista’s legal advisor is Kirkland & Ellis LLP.

“After careful consideration and deliberation, our Board of Directors unanimously concluded that the sale of Marketo to Vista Equity Partners was in the best interest of Marketo and its shareholders,” said Phil Fernandez, chairman and CEO of Marketo. “The acquisition will allow Marketo to continue to focus on customer success and to remain the independent category leader, continuing to set the agenda for product innovation and thought leadership for the entire digital marketing industry. It will also enable us to successfully deliver on the bold vision we recently set forth – to give tomorrow’s marketers and the C-suite an ultra-high-scale enterprise platform for customer engagement.”

“Marketo is the clear leader in the marketing automation space and has consistently delivered innovative mission critical products to its more than 4,600 customers,” said Brian Sheth, co-founder and president of Vista. “Given our proven track record and focus on investing in high-growth SaaS platforms, we are thrilled to partner with Phil and the broader Marketo team to help the company accelerate innovation, growth, and excellence.”

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What: Vista Equity Partners has acquired a majority stake in automating trafficking and billing software Company Mediaocean in a deal that values Mediaocean at about US$720 million.
Why it matters: The investment, which helps the company to continue development of products that address the convergence of digital video and TV, doesn’t hinder Mediaocean’s interoperability with other major video buying systems, including TubeMogul and Adap.tv.

Tz-ar2xE_400x400Vista Equity Partners has acquired a majority stake in automating trafficking and billing software Company Mediaocean. The deal values Mediaocean at about US$720 million, the company confirmed. Mediaocean was the result of the 2011 merger of Mediabank and Donovan Data Systems, a deal valued at US$1.5 billion.

The investment will help the company to continue development of products that address the convergence of digital video and TV. Mediaocean’s products are designed to accelerate the agency workflow and planning process. In 2013, it launched a Connect Partner program, a marketplace where agencies are charged on the percentage of spend they put through the platform.

Mediaocean is also investing in Spectra, a “broadcast exchange” of sorts for TV buyers, and recently extended that offering to include digital video via its partnership with Videology. Working with Videology doesn’t hinder Mediaocean’s interoperability with other major video buying systems, including TubeMogul and Adap.tv, according to the company.

“Four years ago we created Mediaocean with the goal of providing the industry with an open platform to easily integrate campaigns across all traditional and digital media,” said Michael Donovan, chairman of Mediaocean, in a statement. “When Vista approached us, we were impressed by its strategic vision.”Donovan said Vista is more like an “enterprise software holding company than a classic private equity firm with nearly 200 employees – most of whom are operators, not finance professionals.”

Buyers ,actually, expect more convergence on the back end. “They don’t want to just partner with one, they want to partner with several to see which is most effective for their needs,” Jim Tricarico, CRO of broadcast and multichannel video programming distributor  partner Cadent Network, said.Tricarico noted, for example, that MAGNA Global uses TubeMogul while WPP/Mindshare use Videology, which underscores the importance of supporting multiple video/TV planning instances. This is what Mediaocean is building toward.

if you can get the financial outcome of an IPO without the burden of managing a public company, what’s better than that?

descargaAccording to Bill Wise, CEO of Mediaocean, so far, Mediabank had raised a total of US$50 million over a course of their tenure before merging with Donovan.

“if you can get the financial outcome of an IPO without the burden of managing a public company, what’s better than that?, ” said Wise.

Mediaocean will first help with media convergence, specially  TV and video to one marketplace design, similar to what the company did with digital radio with Pandora and Spotify. Secondly, with geographical expansion. As Digital is inherently global, it’s much easier to expand geographically, and the copany is already implementing in both France and Germany, UK and scoping out Asia-Pacific for 2016.Third is diversifying our product, one being connection to the sell side of the market and then extending into planning. On the partnerships, the ones who really stuck out are the ones who represent supply: Pandora, Spotify, AdStruc, Videology, all the companies who aggregate supply and want to plug into Mediaocean’s demand.

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