AI marketing technology company XPON Technologies Group has acquired digital marketing agency Alpha Digital in a deal valued between $1.72 million and $2.61 million, made up of shares, cash and a two year earn out.
The ASX-listed XPON has plug and play software which allows marketers to predict customer behaviour and then tailor advertising and communication.
Alpha Digital will retain its brand and will continue to operate independently with specialised expertise and focus, following 14 years in business, servicing leading brands such as Target, K-Mart and QUT.
Matt Cooper, Alpha Digital’s founder, will continue as CEO. Alpha Digital generated $4.6 million revenue last financial year and has $1 million cash in the bank.
“Alpha has built a quality business with excellent customers in key verticals, like retail, for over a decade,” said Matt Forman, founder and group managing director of XPON.
“It’s that reputation that made them one of our first agency partners. We have an alignment on values for our customers, as well as the culture we’re building for our people.
“Both share a focus on customer-centricity and when Alpha’s smart team is armed with our latest technology, I can’t wait to see the results they’ll deliver.
“Our new combined offering creates an unrivalled suite of AI marketing solutions that help businesses acquire, retain, and monetise customers, with transparency. This acquisition is an important step forward for us and the industry as we drive the modernisation of marketing and customer experience.”
Alpha’s Matt Cooper, with more than two decades in digital marketing, said the pace of change with AI right now is unlike anything before.
“And it’s getting exponentially faster,” he said. “This move gives Alpha the depth of tech capability needed to keep our clients not just current, but ahead.
“In the past, marketers would build a handful of personas based on assumptions about their audience. Today, AI can identify hundreds of profitable personas and predict their customer journeys with speed & accuracy.
"And soon we will be able to automatically design and deploy tailored strategies for each and every profitable customer persona. That level of precision and scalability is the future of marketing, and with XPON, we’re ready to lead it.”
This acquisition represents the first in XPON’s future M&A strategy focused on the tech-enabled digital marketing sector, targeting leading businesses that are positioned to accelerate AI transformation.
The deal structure:
XPON's strategy, according to an investor presentation:
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