Dotdigital Group plc, a listed customer engagement platform, has acquired eCommerce personalisation firm Fresh Relevance for £25 million. The deal includes £18.9m in cash and £6.1m through the issue of new ordinary shares in Dotdigital at 88.698p. This acquisition is expected to add over £6m of annual revenues, with 93% coming from recurring SaaS revenue, and £600,000 of annual EBITDA before integration costs. Following the acquisition, the group will have a cash balance of £38.3m.
Fresh Relevance, founded in 2013, specializes in increasing conversions and boosting revenues by personalizing customer experiences across various channels. Their capabilities include triggered emails, product recommendations, dynamic content, and customer data management. With over 300 customers globally in consumer and B2B ecommerce and travel, Fresh Relevance has established a strong presence in the market.
Dotdigital and Fresh Relevance have a pre-existing relationship and share many joint customers utilizing technology integration. Under the umbrella of Dotdigital, Fresh Relevance will continue to operate under its existing brand. The integration process will be overseen by Dotdigital’s newly appointed chief business operations officer, Helen Thomazin, and Fresh Relevance CEO and co-founder Mike Austin, who will join the Dotdigital leadership team.
“The acquisition of Fresh Relevance significantly enhances our personalization capabilities and presents an opportunity for average revenue per user expansion,” said Dotdigital CEO Milan Patel. He further added, “Our cultural alignment and long-term partnership make me confident that customers, old and new, will benefit from a more comprehensive offering that goes beyond traditional marketing channels.”
Dotdigital looks forward to working closely with Fresh Relevance to achieve shared ambitions and drive increased value for the group’s shareholders.
