Olshan Frome Wolosky advised IZEA on the deal
IZEA, Inc. (NASDAQ: IZEA), operator of IZEAx®, the premier online marketplace connecting brands and publishers with influential content creators, has reached a definitive agreement to acquire TapInfluence, Inc. in a part-cash, part-stock transaction. TapInfluence is a leading platform and online marketplace for brands and agencies to execute influencer marketing campaigns. The acquisition will augment IZEA’s software as a service customer base, and provide additional technology capabilities which will eventually be integrated into IZEAx.
Headquartered in Silicon Valley, TapInfluence operates a SaaS based online marketplace that enables marketers to access an opt-in network of more than 87,000 registered online influencers ranging from mommy bloggers to Instagram celebrities. The TapInfluence network will complement IZEA’s own opt-in network of more than 700,000 registered Creator accounts ranging from online influencers to award-winning freelance journalists.
TapInfluence is backed by leading venture capital firms including Grotech Ventures, Noro-Moseley Partners and Access Venture Partners, who will become IZEA stockholders as part of the transaction.
TapInfluence’s revenues for the year ended December 31, 2017 were approximately $5.9 million and its gross billings were approximately $18.2 million. Approximately 65 percent of TapInfluence’s 2017 revenues came from SaaS subscriptions, 30 percent from marketplace revenues and 5 percent from other services. For 2017, combined annual revenues of IZEA and TapInfluence would have been in excess of $30.3 million, with gross billings of approximately $47.4 million.
Olshan advised with a team including Spencer G. Feldman (Picture) Timothy D. Knox, Andrew B. Lustigman, Safia A. Anand and Stephen L. Ferszt.
Involved fees earner: Spencer Feldman – Olshan Frome Wolosky LLP; Timothy Knox – Olshan Frome Wolosky LLP; Andrew Lustigman – Olshan Frome Wolosky LLP; Safia Anand – Olshan Frome Wolosky LLP; Stephen Ferszt – Olshan Frome Wolosky LLP;
Law Firms: Olshan Frome Wolosky LLP;
Clients: IZEA Worldwide Inc;