Cardlytics (CDLX) Buying Bridg For $350 Million

By Amit Chowdhry ● April 13, 2021
  • Cardlytics (NASDAQ: CDLX) announced today that it is going to buy Bridg for approximately $350 million in cash at closing. These are the details.

Cardlytics (NASDAQ: CDLX) announced today that it is going to buy Bridg, a customer data platform that empowers marketers to better understand and reach customers using SKU-level insights. And once the integration is complete, this addition will pair Cardlytics’ ad platform – which has an audience of more than 163 million monthly active users – with Bridg’s enhanced SKU-level insights and ability to engage consumers across other digital platforms. This deal plays a major role in the expansion of Cardlytics’ advertising platform “into a holistic results-driven, self-serve, always-on solution for marketers.”

Bridg is known for providing a cloud-based platform that retailers and CPG marketers use for a wide range of applications, including analyzing customer behavior, marketing on digital platforms, and measuring the effectiveness of their business strategies while following consumer privacy best practices. And Cardlytics will work with its financial institution partners to integrate the Bridg solution into its future customer offerings. Following the acquisition and integration of the two platforms, marketers are going to have the ability to reach customers with a comprehensive view of their purchase behavior – both where they shop and what they buy – across any retailer.

Subject to the closing conditions, Cardlytics has agreed to acquire Bridg for approximately $350 million in cash at closing. And Cardlytics has agreed to make two potential earnout payments in cash and stock on the first and second anniversary of the closing based on Bridg’s U.S. annualized revenue run rate. Cardlytics is expecting these payments could equal approximately $100 million to $300 million in the aggregate.

KEY QUOTES:

“The Cardlytics platform is a powerful and unique advertising platform that brands trust because we have a better approach to target and engage consumers, which is based on actual consumer purchases across all merchants in a privacy-first way. Bridg built a similar model, but instead focused on all of the products purchased at an individual retailer. 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.”

— Lynne Laube, CEO and co-founder of Cardlytics

“As the first platform to enable retailers to engage all of their customers, regardless of loyalty enrollment, our focus has been to build a holistic 360-degree view of purchase behavior. There is no solution besides Cardlytics that makes it possible to scale Bridg in a privacy-first, brand-safe manner. Lynne and the Cardlytics team have created an advertising solution with an unmatched capability to truly understand and reach more than 163 million consumers. We believe bringing our two platforms together is going to revolutionize the industry and become table stakes for retailers and CPG advertisers.”

— Amit Jain, CEO of Bridg

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