Shares of Rocket Fuel gained 12% Thursday to close at $16.29 following the news of the acquisition. Rocket Fuel competes with Conversant in the digital marketing space.
Alliance Data will buy Conversant for $2.3 billion in stock and cash. The deal values Conversant at $35 a share, and represents ten times the company's adjusted EBITDA estimates for 2015.
"The acquisition 'bulks up' Alliance Data in digital marketing, which is experiencing the fastest secular growth," Alliance Data CEOED Heffernan said in a statement.
FUEL data by YCharts
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