Data collaboration software provider LiveRamp has announced the acquisition of data clean room software provider Habu in a cash and stock transaction valued at approximately US$200 million.

The acquisition is aimed at accelerating LiveRamp's ability to offer global data collaboration at scale, across all clouds and walled gardens. Habu's technology is used by global brands and media companies to securely share first-party customer data with business partners and publishers for more effective and personalised marketing.

The acquisition will enable LiveRamp to deliver differentiated capabilities to customers, including streamlining and simplifying cross-cloud collaboration, achieving a single view of measurement, and expanding LiveRamp's data collaboration network. The Habu team will lead LiveRamp's data collaboration strategy, reporting to LiveRamp's Chief Revenue Officer, Vihan Sharma.

Under the terms of the agreement, LiveRamp will acquire Habu for approximately $200 million, consisting of approximately $170 million in cash to be paid at closing and the remaining consideration in the form of LiveRamp stock related to unvested stock awards and holdback agreements with certain key employees that will vest in future periods.

"LiveRamp enables next-generation data collaboration that delivers unmatched brand and business value. Through this acquisition, we will further empower our customers to unlock insights, use cases, and revenue streams by seamlessly connecting data and deepening measurement, across any platform or partner they prefer," said CEO of LiveRamp, Scott Howe.

"Habu shares our vision, and together, we will help more global enterprises benefit from the transformative power of data collaboration."

CEO of Habu, Matt Kilmartin, echoed these sentiments.

"LiveRamp and Habu approached the data collaboration market with two complementary strategies that share the common goal of creating the largest data collaboration network rooted in privacy. As we look ahead to our next chapter as part of LiveRamp, we're as committed as ever to our mission of paving the way for the next frontier of responsible data collaboration," he said.

The addition of Habu is expected to extend LiveRamp's lead in data collaboration, driving accelerated growth and value for LiveRamp shareholders while also opening up fresh customer acquisition targets. LiveRamp expects the acquisition to deliver approximately $18 million in revenue in FY25 and to help accelerate the Company's progress toward Rule of 40 achievement. The transaction is expected to be completed in LiveRamp's fiscal fourth quarter.

LiveRamp provided preliminary financial results for its fiscal 2024 third quarter ended December 31, 2023, with revenue of approximately $174 million, an increase of 10% year-on-year, and operating income of approximately $15 million.