Izea Inc (NASDAQ: IZEA) is flying early on in the market this morning, and for good reason. The company announced that it has acquired a key SaaS platform, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:
- the acquisition news;
- what we’re seeing from IZEA as a result; and
- what we’ll be watching for ahead.
IZEA Announces Asset Purchase
As mentioned above, Izea is having an incredibly strong start to the trading session this morning after the company announced an asset acquisition. In a press release issued early this morning, the company announced that it has reached a definitive agreement to acquire TapInfuence, Inc. The acquisition will take place through a cash and stok transaction.
In the release IZEA said that TapInfluence is a leading SaaS platform and online marketplace for brands and agencies to execute influencer marketing campaigns. Through the transaction, the company’s software will be augmented as a service customer base, providing additional technology and capabilities that the company is expecting to integrate into IZEAx. In a statement, Ted Murphy, Founder and CEO at IZEA, had the following to offer:
We are bringing together two of the leading companies in the influencer marketing space, creating an influencer marketing offering that is unparalleled in the industry, and providing the critical mass necessary for making significant inroads on several fronts… Our goal is to provide both marketers and influencers with the best possible experience. This combination will allow us to further enhance our technology, significantly increase marketplace liquidity, and provide incredible customer service. In addition to customer benefits, the efficiencies gained from consolidating our operations will also enhance our bottom line.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news causes moves. In the case of Izea, the news proved to be overwhelmingly positive. After all, the acquisition will strengthen the company’s technology and customer base. So, it comes as no surprise that excited investors are sending the stock toward the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:31), IZEA is trading at $1.60 per share after a gain of $0.66 per share or 71.03% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on IZEA. In particular, we’re interested in following the story surrounding the company’s acquisition and use of the technology to improve its business. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!