Atlanta digital advertising platform Cardlytics said it plans to buy a cash-back platform to expand its technological capabilities, according to a March 1 release.
Cardlytics (NASDAQ: CDLX) is set to acquire Dosh for $275 million in cash and stock.
Dosh, an Austin-based startup founded in 2016, allows people to link their payment information into the Dosh app in order to get automatic cash back at partnering companies. This year, Dosh added capabilities to work with neo-banks and financial technology companies, such as Venmo or Betterment.
Cardlytics, which went public in 2018, helps retailers, restaurants and service providers deliver customized ads via banking websites.
“With the addition of Dosh, Cardlytics will accelerate its ongoing efforts to improve the advertising industry through our brand-safe alternative, which provides superior returns based on actual purchases,” Cardlytics CEO Lynne Laube said in the announcement.
The acquisition combines Cardlytics’ reach, which includes more than 163 million monthly users, and Dosh’s innovation to help advertisers more effectively offer consumer discounts through financial institutions, according to the release.
Dosh will also help Cardlytics expand its partnerships to neo-banks and fintech companies and better reach younger consumers, according to Cardlytics fourth-quarter earnings presentation.
This deal is Cardlytics’ first acquisition since its founding 13 years ago.
Cardlytics saw about an 11% decrease in year-over-year revenue in 2020, earning $186.9 million compared to $210.4 million in 2019, according to its fourth-quarter earnings presentation.
