IZEA Acquires TapInfluence: Sometimes, when a company makes an announcement that excites investors, the stock of that company goes flying—as in more than 100%, and sometimes even more than 300%. But, for that to happen, the news has to be pretty big.
On Thursday, something like this happened to IZEA, Inc. And you can bet the Florida-based company’s news was big, maybe even massive.
IZEA Acquires TapInfluence: Agreement Reached
Earlier today, IZEA, a company that allows marketers and creators to connect, announced that it had reached a definitive agreement to purchase TapInfluence, Inc.
TapInfluence, for those who don’t know, is a leading marketing platform, and, some could even label it as IZEA’s rival. However, based on Thursday’s news, it appears the two companies put the competition behind them, and joined forces.
IZEA Acquires TapInfluence: Details
Details are relatively sparse, but here’s what we know:
- IZEA acquires TapInfluence, but through a merger agreement
- Once acquired, TapInfluence will turn into a 100% owned subsidiary of IZEA
- It is a part-cash, part-stock transaction; the transaction is forecasted to be worth roughly $7M
- The Florida company will issue $1.5M in cash, and $1.15M shares of common stock, once the deal has been finalized
- IZEA expects to close the deal by the end of July
IZEA Speaks on the Acquisition
Not only is the market reacting positively to the news, but the company itself is optimistic.
When speaking on the acquisition, Ted Murphy, CEO, said that the bringing together of IZEA and TapInfluence creates “an influencer marketing offer that is unparalleled” in the sector.
TapInfluence is on the Same Page
IZEA investors are excited, but what about TapInfluence investors? After all, the two companies were competing against each other in the industry prior to this move.
That doesn’t seem to matter too much, though. If anything, it’s the reason investors are as excited as they are. According to Mike Elliott, a longtime investor of TapInfluence, IZEA’s acquisition of TapInfluence “is a real opportunity for consolidation in the Influencer Marketing” industry.
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The IZEA Stock (NASDAQ:IZEA)
Now, the moment we’ve all been waiting for: how high did the IZEA stock get today? Answer: very high.
According to Google Finance, the IZEA stock closed the day trading at $2.56 on the Nasdaq Exchange. This means the stock closed the session up 173.65%, making it a Yahoo Finance trending ticker of the day.
IZEA Acquires TapInfluence: Takeaway
IZEA acquires TapInfluence and all is good in the marketing world. Or is it? Will this acquisition backfire? Or do you think the two groups joining forces is the best way to advance the industry? Based on today’s stock jump, I bet it’s the latter option.
Featured Image: Twitter
