Blackstone-backed Vungle acquires intelligence platform AlgoLift

AlgoLift, based in Los Angeles, leverages data science by using proprietary algorithms that determine the future lifetime value of customers to create an optimal investment strategy.

Mobile ad network and monetization platform Vungle has made its first add-on acquisition since Blackstone’s backing in 2019. 

The company has added AlgoLift, a user acquisition automation platform for mobile advertisers, Vungle told PE Hub Tuesday.

The combination of Vungle and AlgoLift is set to provide advertisers with actionable intelligence and an automated solution to optimize performance metrics such as Lifetime Value (LTV) and Return On Ad Spend (ROAS) by using contextual data, the company said. 

AlgoLift, based in Los Angeles, leverages data science by using proprietary algorithms that determine the future lifetime value of customers to create an optimal investment strategy.

The company relies on anonymized data and allows to target and optimize ad campaigns in compliance with pending iOS-related changes to IDFA.

“Our mission is to be the trusted guide for growth and engagement for our developers,” Jeremy Bondy, Vungle COO, said in an announcement.  

“AlgoLift’s proprietary recommendation technology and exceptional team accelerates our transformation, extending the breadth and reach of our platform. As a result, our developers can expect an entirely new level of scale and performance.”

AlgoLift, co-founded in 2017, is led by CEO Andrew Tutundjian and CTO Dmitry Yudovsky. As part of the deal, both executives as well as the entire AlgoLift team will join the Vungle organization.

The acquisition is supported by Blackstone, which acquired Vungle in September 2019 for $750 million, according to a Wall Street Journal report from that time.

Vungle, based in San Francisco, is a performance marketing platform for in-app video advertisements on mobile devices. Vungle, founded in 2011, is currently working with 60,000 mobile apps worldwide and is working with publishers like Rovio, Zynga, Pandora, Microsoft and Scopely, according to the acquisition release.

For Blackstone, the deal comes on the heels of its majority purchase of ZO Skin Health, a physician dispensed line of skincare products. The investment was made through Blackstone’s Tactical Opportunities fund. 

Elsewhere on the advertising front, Vista Equity is preparing to launch a sale process for an advertising system of record, Mediaocean. PE Hub reported last week that the sale process is expected to launch this month, and a deal could value the company north of $1.4 billion.

Action Item: Read more on Blackstone’s new growth equity team on PE Hub.