Criteo is currently engaged in merger and acquisition talks with Skai, a company previously known as Kenshoo. The potential deal could be worth hundreds of millions of dollars as Criteo, based in France, aims to solidify its position as a specialist in retail media. Negotiations have been ongoing for several weeks, and while discussions are advanced, a final agreement is not guaranteed, according to various sources.
Skai has been actively seeking offers this year, primarily engaging with strategic buyers. Sources suggest that Skai’s strong EBITDA and growth could lead to a sale price exceeding $500 million. Skai’s efforts to find a buyer include engaging with financial advisors, though specific details remain confidential.
Originally founded as Kenshoo in 2006, Skai rebranded to its current name in 2021 after acquiring Signals Analytics. This rebranding was part of Skai’s strategy to enhance its e-commerce capabilities, which were further supported by funding rounds totaling $60 million before a 2016 venture round. The company’s evolution and its focus on performance marketing have made it an appealing target for acquisition.
Criteo and Skai in Talks for Major Merger to Enhance Retail Media Capabilities
Criteo’s focus on retail media, driven by CEO Meghan Clarken since 2020, is a key aspect of its turnaround strategy. Clarken’s approach has involved multiple acquisitions, including BrandCrush in 2023, following previous purchases of Mabaya and IPONWEB. This strategy reflects Criteo’s need to adapt to a changing advertising landscape impacted by the decline of third-party cookies.
The potential acquisition of Skai could enhance Criteo’s measurement capabilities and integration with retail media sites, aligning with recent partnerships such as its July 2024 deal with Microsoft Advertising. This partnership aims to streamline retail media operations and address advertiser concerns.
The ad tech sector is seeing increased M&A activity, with Outbrain’s $1 billion purchase of Teads and other notable deals indicating a resurgence in industry consolidation.
