The Wall Street Journal reported Thursday that Acxiom Corp. of Conway is getting closer to the sale of its data-marketing division, Acxiom Marketing Solutions, which accounts for the about three quarters of the data services firm’s 2018 revenue.
The Journal reports that bids for the unit are due today. Citing “people familiar with the matter,” the Journal said advertising giants Interpublic Group of Companies Inc. of New York and Dentsu Inc. of Tokyo are expected to be among the bidders.
Shares of Acxiom (Nasdaq: ACXM) were up more than 2.5 percent on the news, trading at about $30.
The Journal, citing sources, said the division could sell for between $1.5 billion and $1.8 billion. During a conference call on fourth-quarter and year-end results in May, CFO Warren Jenson said AMS had revenue of about $700 million in fiscal 2018; total company revenue was $917 million.
Acxiom announced in February that it would restructure its business units, going from three segments to two: LiveRamp and Acxiom Marketing Solutions. It also said that it intended to explore options for AMS, including a sale or spin-off. It said the alignment would allow it to meet client needs in a changing marketplace, create a strong foundation for growth and enhance value for shareholders.
The company formed AMS by combining parts of Audience Solutions segment with its Marketing Services segment. The unit includes data management services, data strategy services, analytics and “audience creation services,” which help clients create audiences through “look-alike modeling,” custom segments and more.
Acxiom purchased LiveRamp, a digital marketing service that connected a client’s CRM data with data online, for $310 million in 2014. The business grew, even making its own acquisitions.
Under the new restructuring, LiveRamp now includes Acxiom’s old Connectivity segment and some elements of the old Audience Solutions segment — products like IdentityLinkT, AbiliTec intellectual property and Acxiom’s TV integrations. Acxiom calls its the world’s first end-to-end identity platform for people-based marketing.
In the conference call, Acxiom CEO Scott Howe said LiveRamp clients include some the top banks, insurance companies, telecommunications firms, automakers, retailers and airlines.
There has been some speculation, too, that Acxiom might sell LiveRamp or continue running it as an independent company.
Acxiom shares took a hit in March, falling by 19 percent the day after Facebook announced it would suspend its Facebook Partner Categories program. The stock has since recovered.
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