Microsoft (NASDAQ: MSFT) acquired PromoteIQ, a New York-based provider of vendor marketing technology for online retailers and brands.
The amount of the deal was not disclosed. In conjunction with it, Nauta Capital and Laconia Capital, which co-led the company’s funding round in 2017, exited PromoteIQ.
Founded in 2012, PromoteIQ provides a private marketplace approach to digital vendor marketing. Using its technology, retailers can build and scale vendor marketing programs on their e-commerce properties, generating incremental high margin revenue and giving brands a new marketing channel.
Clients include global retailers such as Kroger, Kohl’s, Office Depot, and Overstock.com and thousands of their brand/vendor partners,
The company will now become a division of Microsoft Advertising and the new combined entity will provide retailers with a portfolio of technology solutions to modernize their e-commerce platforms and increase their vendor marketing revenue.
Founder and CEO Alex Sherman will continue to lead PromoteIQ reporting to Rik van der Kooi, Corporate Vice President of Microsoft Advertising.
PromoteIQ’s team also includes Peter Schwartz (CTO) and Jing Feng (COO).