Orbify.AI AS is acquiring Penetrace AS from Verdane and is continuing its growth strategy to become a leading platform for data processing. Penetrace develops and sells software that measures the effectiveness of advertising campaigns and brand monitoring for large companies in both Norway and the rest of Europe.
“We believe Penetrace’s technology and expertise are particularly attractive at a time when advertisers’ operating conditions are continuously changing,” says Axel Tenvik, CEO of Orbify.AI.
By implementing Orbify’s AI technology as part of its existing solutions, Penetrace will be able to scale its business and increase its market share. Furthermore, Penetrace will be strengthened with additional sales and marketing resources from Orbify.AI. Orbify.AI will launch a new growth strategy involving both organic growth and acquisitions of complementary businesses.
“Penetrace leverages the value of large amounts of historical data so that agency consultants and decision-makers at advertisers can achieve better results from both short-term and long-term marketing activities. The company has one of Norway’s largest databases for campaign tests, which can be enriched by using Orbify.AI technology. This will provide deeper insights and more accurate predictions for Penetrace’s customers,” says Tenvik.
The acquisition means that Penetrace will become part of a larger group, creating many interesting synergies between subsidiaries and the parent company, Orbify.AI.
Analysis Technology with the Most to Gain
Penetrace was founded in 2005 by entrepreneur and CEO Henning Tunsli when he gathered a consortium of clients, including Telenor, Gjensidige, Steen & Strøm, BI Norwegian Business School, Boots, and Bring, to develop the company’s first product, Campaign Monitor.
Penetrace has operated in markets that have experienced significant structural changes over time. In line with this development, Penetrace today offers technology and data for measuring the effectiveness of all types of advertising to advertisers, media companies, and agencies. The company has three solutions that analyze the potential for improvement in (a) creative execution, (b) media use, and (c) competitiveness, with campaigns measured against Penetrace’s extensive database. By becoming part of Orbify.AI, the company is positioning itself for a future where advertisers, agencies, and analytics firms will increasingly adopt artificial intelligence.
“Clients with high-quality data have the most to gain from adopting artificial intelligence. Penetrace has spent over 16 years standardizing quality data and developing technology that ensures systematic improvements in advertising effectiveness. We are now reaping the rewards of this work,” says Tunsli, referring to Penetrace’s vast database of campaign tests.
Tunsli believes the timing for the acquisition and scaling of Penetrace is ideal.
“After more than five years of development, we can now offer predictions of traffic and sales based on machine learning. Marketers can now shift their focus from looking back to looking forward, and test their decisions before giving the green light. It’s fantastic to have an owner who understands the challenges marketers face today and how artificial intelligence can help,” says Tunsli.
Preferred Partner for Growth Companies and Challengers
Penetrace has a number of major clients who use its solutions. Among the most active users of Penetrace technology are companies such as Adevinta, Google, Sector Alarm, Strawberry, and Farmasiet—all examples of businesses that excel at using insights in smart ways to achieve higher revenue growth.
“Many are now recognising how we can use data more intelligently to enhance competitiveness, resulting in better traffic and sales over time. Combining these data within Penetrace has demonstrably driven growth for our customers,” says Tunsli.
In recent years, two out of three new Penetrace clients have been international brands seeking more precise marketing and increased growth.
Active Owners Increase Their Stakes
Henning Tunsli will continue as CEO of Penetrace and will remain a co-owner in Orbify.AI. Tunsli states that he has entered into an agreement allowing him to further increase his stake in Orbify.AI, an option that several other key employees have also signed.
“It is part of Orbify.AI’s business model that key employees become co-owners of the company. We want to ensure that employees are aligned and participate in value creation. Penetrace has a talented and exciting team, and we are delighted they will continue with us,” says Tenvik.
Considering New Acquisitions
As part of Orbify.AI’s strategy, subsidiaries can also acquire other companies with complementary solutions to increase market share and offer solutions across a larger part of the value chain to existing and new clients. In such processes, Orbify.AI will assist with financing and leverage a highly experienced M&A team, helping to reduce costs for companies while structuring the best possible terms for any potential transaction.
“Together with our new owner, we have now agreed on an ambitious plan to grow both organically and through acquisitions of complementary companies. We are very excited about this,” says Tunsli.
The acquisition of Penetrace opens up a new vertical for Orbify.AI, where the company sees growth potential and opportunities for further consolidation.
“We expect to announce new complementary acquisitions in the near future,” adds Tenvik.
Aiming to Raise NOK 100 Million
Orbify.AI has recently engaged SpareBank 1 Markets as a financial advisor in connection with a financing round, where Orbify.AI plans to raise NOK 100 million and list the company on a stock exchange at a later date.
“We see many good acquisition opportunities that complement Orbify.AI’s strategy and want to strengthen the balance sheet for the execution of growth initiatives and new acquisitions. Orbify.AI has validated and is in continuous contact with over 20 potential acquisition candidates with a combined turnover of over NOK 900 million,” concludes Tenvik.
Contacts:
Henning Tunsli, CEO of Penetrace: +47 928 03 069 / henning@penetrace.com
Axel Tenvik, CEO of Orbify.AI: +47 922 08 020 / axel@orbify.ai
