Cardlytics To Snap Up Bridg For $350M; Shares Dip

Cardlytics inked a cash deal to acquire Bridg, a customer data platform, for $350 million. However, shares of the digital advertising platform dropped 6.1% on April 13.

This acquisition will combine Cardlytics’ (CDLX) advertising platform, having more than 163 million monthly active users, with Bridg’s advanced SKU-level insights and capability to connect consumers across other digital platforms, the company said. Notably, the cloud-based platform of Bridg is used by retailers and CPG marketers for various applications.

Per the terms of the deal, in addition to deal value, based on Bridg’s U.S. annualized revenue run rate, Cardlytics is likely to pay $100 million to $300 million in total at the end of the first and second year, post-acquisition, in cash and stock.

Cardlytics CEO Lynne Laube said, “Since founding Cardlytics, our vision was to have a broad view into consumer spend with a detailed understanding of a customer’s individual product preferences. Once we integrate this SKU-level data, we will be able to deliver significant reach, along with targeting and measurement capabilities to brands across all of their marketing investments.” (See Cardlytics stock analysis on TipRanks)

Following the deal announcement, Raymond James analyst Aaron Kessler reiterated a Hold rating.

Kessler believes “the acquisition brings important SKU level data the Cardlytics platform which CDLX has not had previously (focused on retailer level data)…Overall, we are positive on the acquisition given the SKU level data and further potential to expand its services outside (e.g. measurement).”

Overall, the stock has a Hold consensus rating based on 1 Buy and 5 Holds. The average analyst price target of $138.25 implies 31% upside potential from current levels. Shares have increased 25% over the past six months.

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Cardlytics is currently Neutral, as 6 hedge funds decreased their cumulative holdings of the stock by 198,000 shares in the last quarter.

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