Media company Advance Publications is set to acquire 1010data Inc. for $500 million, spotlighting the uptick in deals and investments among data specialization technologies.
The company facilitated the deal through affiliate Advance/Newhouse, the owner of Condé Nast magazines, which include the New Yorker, Vogue, Vanity Fair and Wired; and American City Business Journals, the publisher of 43 city-specific business news publications, including the New York Business Journal, as well as national digital publications like Upstart Business Journal and Bizwomen.
Joining the 1010data board is Nomi Bergman, president of Bright House Networks. The transaction is expected to boost the media group’s data processing capabilities.
“Advance was looking for an investment in the big data space and we, over the course of the last year, were planning to do some sort of capital raise or exit,” said Sandy Steier, co-founder and chief executive officer of 1010data.
1010data was founded in 2000 by Steier and Wall Street veteran Joel Kaplan. It has grown to about 150 or so employees — all of which are slated to join Advance. The company touts about 750 customers within a variety of sectors, including telecommunications, retail and financial services.
A typical use of 1010data's services would be for retailers, Steier said. "Retailers have a lot of information on transactions with customers that they’ve never looked at, or items that customers buy, but have not traditionally analyzed it," he said. "But it’s becoming more common."
1010data plans to use the cash it gained from the sale to expand its sales channels, as well as further the development of the company’s technology.
Steier said 1010 and Advance have been talking for about a year and 1010 considered several other offers, but would not reveal who the other bidders were. Investment bank BMO Capital Markets advised 1010data on the sale process while New York-based Foros Group advised Advance on the acquisition.
Advance will operate 1010data as a subsidiary. In 2010, 1010data raised $35 million from Norwest Venture Partners, which sold its stake.
As for Advance Publications, more M&A is expected in the future. In July, the Newhouse family, which owns Advance Publications, spun off its San Francisco venture business into an independent company — and will now look for outside investment partners to join a new venture firm. Advance Vixeid Partners is expected to remain on the hunt for startups across Silicon Alley.
Advance Vixeid is looking to raise up to $400 million, according to a recent filing with the Securities and Exchange Commission
New York Business Journal