LiveRamp (RAMP) M&A announcement summary

Deal rationale and strategic fit

• Acquisition positions the group as a leader in data co-creation, enabling clients to build more intelligent AI agents and drive agentic business transformation.

• Expands addressable market, opening access to a high-growth sector estimated at $1 trillion by 2029, beyond traditional marketing.

• LiveRamp's platform enhances secure, scalable data collaboration, unifying fragmented data and complementing existing capabilities in identity and technology.

• Integration with Sapient, Epsilon, and Marcel creates a unique end-to-end solution for enterprise AI transformation.

• Acquisition leverages a strong cultural and operational fit, tested through a prior commercial partnership.

Financial terms and conditions

• All-cash transaction with an enterprise value of $2.167 billion and equity value of $2.546 billion at $38.50 per share, a 29.8% premium to LiveRamp's closing price on May 15, 2026.

• Implied forward adjusted EBITDA multiple of 12.3x based on 2026 consensus figures.

• Funded through cash on hand and new bonds, with expected net financial leverage of 1.2x in 2027, maintaining BBB+/Baa1 ratings.

• Accretive to headline EPS from year one, with a projected 2.9% positive impact on 2026 EPS, and raises 2027-2028 growth objectives for net revenue and EPS.

• Dividend payout policy and share buybacks to continue, with focus on deleveraging until early 2028.

Synergies and expected cost savings

• Targeting at least $50 million in run-rate cost savings from margin improvement, elimination of public company costs, shared services integration, and procurement synergies.

• Synergies from combined procurement, IT, hosting, and real estate costs.

• LiveRamp's operating margin expected to align with group margin in year one post-acquisition.

• Integration with Epsilon and Marcel to deliver faster, more secure, and scalable data collaboration.

• Anticipated boost to clients' business growth and addressable market through proprietary data assets.