NEW YORK (TheStreet) -- Rocket Fuel (FUEL) was gaining 3.4% to $16.85 after-hours Thursday following the news that Alliance Data Systems(ADS) - Get Reportis acquiringConversant (CNVR) .

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.

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"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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