E-commerce analytics firm MikMak is removing a competitor by acquiring assets from rival ChannelAdvisor

• MikMak is acquiring part of ChannelAdvisor for an undisclosed sum.
• The deal will “remove a competitor from the ecosystem,” MikMak’s CEO said.
• Adtech firms are racing to grab more of the retail media business, expected to be worth $130B.

MikMak, an e-commerce startup, has acquired ChannelAdvisor’s shoppable media and brand analytics arm for an undisclosed sum.

MikMak’s technology is used by major consumer packaged goods companies to make digital ads shoppable by linking them to product pages on Target, Amazon, and Walmart. MikMak provides brands with sales data on what people purchased after clicking on an ad.

MikMak will be able to expand to 1,200 CPG clients, including Diageo and Hershey’s, as a result of the acquisition. According to founder and CEO Rachel Tipograph, ChannelAdvisor also works with consumer electronics, home improvement, and automotive parts brands, which are new categories for MikMak.

According to Tipograph, the deal will increase revenue and headcount by 50%. MikMak will now have 175 employees thanks to the new ChannelAdvisor hires.

E-commerce M&A activity has increased significantly as brands seek more data and technology to handle retail advertising. Retail media has grown rapidly as retailers such as Walmart and Best Buy have built out their own advertising businesses, and Morgan Stanley predicts it will be a $130 billion industry by 2025.

MikMak and other tech firms are vying for a larger share of that market. MikMak inherits analytics that advertisers want to justify increasing ad spend with retailers in the ChannelAdvisor buying part.

“MikMak has been around for nine years — now we have competitors,” Tipograph explained. “Removing a competitor from the ecosystem is one of the best things you can do from a strategic standpoint.”

According to Tipograph, brands want to work with fewer e-commerce partners, which will lead to consolidation.

This is MikMak’s second acquisition of the year. MikMak acquired Swaven in February for an undisclosed sum in order to expand its international footprint. According to PitchBook, MikMak has raised $19 million in funding.

CommerceHub, a private equity-backed company, owns ChannelAdvisor, which also sells tools to assist brands with digital marketing, content, and feed management. ChannelAdvisor will continue to sell those tools. MikMak and ChannelAdvisor will cross-sell their products as part of the agreement.