UPDATED May 31, 2016.
On May 31, 2016, private equity firm Vista Equity Partners agreed to acquire San Mateo, Calif.-based marketing automation platform Marketo Inc. (NASDAQ: MKTO), for $1.79 million in cash. Closing of the deal is subject to customary closing conditions.
San Mateo, Calif.-based marketing automation platform Marketo Inc. (NASDAQ: MKTO) is said to be working with Morgan Stanley (NYSE: MS) to explore strategic alternatives including a potential sale, Bloomberg reported.
In reaction to the report, MKTO shares jumped nearly 25% closing today at $26.77, giving the company a market value of $1.19 billion.
Industry analysts are said to see SAP (NYSEE: SAP) and Microsoft (NASDAQ: MSFT) as the most likely potential bidders for Marketo.
Marketo was founded in 2006 by Phil Fernandez, Jon Miller and David Morandi, all formerly of Epiphany. Headquartered in San Mateo, Calif., the company has additional offices in Portland, Ore., Dublin, Ireland, Tel-Aviv, Israel, and Sydney, Australia.
In November 2011, Marketo raised a $50 million funding round led by Battery Ventures, having raised a total of $108.4 million by way of 6 venture capital funding rounds prior to going public on May 17, 2013. Other pre-IPO VC investors included InterWest Partners, Institutional Venture Partners (IVP), Mayfield Fund and Storm Ventures.
In May 2015, Marketo acquired San Francisco-based mobile A/B testing company Vessel, formerly Zubhium. In December 2013, it acquired Israeli website personalization startup Insightera for $20 million. In August 2013 it acquired Seattle-based digital marketing software suite Optify, and in April 2012, it acquired SaaS-based social marketing platform Crowd Factory located in San Francisco.
Marketo provides a cloud-based engagement marketing software platform. The platform enables execution, management, and analytical measurement of online, social, mobile, and offline marketing activities and customer interactions. It designs, builds, and markets the engagement marketing platform with integrated applications to address the needs of marketing professionals, which include marketing automation, email marketing, mobile engagement, social marketing, digital ads, web personalization, marketing analytics, predictive content, marketing calendar, and sales insight.
The company markets and sells its products to business services, consumer, financial services, healthcare, manufacturing, media, technology, and telecommunication industries through distributors, agencies, resellers, and OEMs.