Connectivity generates a relatively small portion of Acxiom’s revenue, bringing in $147 million in 2017, compared to $322 million from Audience Solutions and $411 million from Marketing Services. But it’s part of Acxiom’s evolution from a data broker and on-boarder into an agnostic data infrastructure service.
“LiveRamp took a major step forward, going beyond data onboarding,” Howe said in an earnings report last year.
The Marketing Services business, though the largest revenue producer, is a managed services offering to help onboarding customers use Acxiom’s audience and identity match solutions.
And Acxiom has been trimming the Marketing Services division even as it expands its programmatic business. In 2016, the marketing cloud Zeta Interactive acquired Acxiom Impact, its email marketing services unit.
BMO Capital Markets raised its price target on Acxiom stock from $32 to $36, based on optimism that a strategic buyer for its marketing and audience solutions will be willing to pay a premium.
“We also don't rule out a second deal for LiveRamp,” wrote BMO senior analyst Dan Salmon in an investor note, which he said would likely be a scaled software company that could cut overhead while integrating the data and identity-matching technology.