By
Godfrey Benjamin
March 22nd, 2024
The AppLovin press release insists that “Adjust will retain its unique brand and culture and continue to operate as a distinct company”.
California-based tech platform AppLovin is set to acquire Adjust in a deal estimated at $1 billion. AppLovin’s platform helps app developers to market their apps on the global market. It has over 420 daily users on more than 1.5 billion devices per month.
Adjust is a Berlin-based startup that was founded in 2012. It provides tools that help developers measure the performance of apps and prevent fraud. The company has a team of over 500 in 16 offices worldwide. Over 50,000 apps use all or part of their product suite including Soundcloud, Foodpanda, Yelp, Tencent and Rakuten.
In a statement released Wednesday, AppLovin Co-Founder and CEO Adam Foroughi had this to say:
“We have worked closely with the Adjust team for years and we’re thrilled to have the opportunity to team up with them. Adjust’s product-first approach to the attribution and analytics space is comparable to how we built AppLovin, and exceptional combinations are born from similar objectives and culture. Together, we believe we will propel marketing tools innovation forward for mobile app developers globally.”
Terms of the deal, which is pending regulatory approval, are still uncertain.
With backing from equity firm KKR & Co., has made several acquisitions in recent years. The Chinese private equity firm made a $400M minority buy-in in 2018, bringing AppLovin’s value to about $2B.
Some so AppLovin’s buys include in-app bidding solutions MAX, SDK management platform Safe DK and major gaming company Machine Zone. Other investments are, PeopleFun, Clipwrire Games, Geewa and Supercell-backed Redemption Games, all gaming studios. All this in addition to its in-house game publisher Lion Studios.
Concerns Over the Deal between AppLovin and Adjust
The move to purchase Adjust could be brought into question considering that Apple Inc (NASDAQ: AAPL) is about to change the mobile application landscape with its new iOS 14 privacy framework.
Adjust addressed this concern by revealing that the latest versions of its Software Development Kit support “key parts of Apple’s iOS 14 update”.
Another concern raised has been Adjust’s independence. Kochava CEO Charles Manning likened measuring in apps to a referee in sports. He said both should be independent and that AppLovin owning Adjust could hinder that.
The AppLovin press release insists that “Adjust will retain its unique brand and culture and continue to operate as a distinct company”.
Adjust Co-Founder and CTO Paul Müller stated:
“Our ambition always was to be the world’s first comprehensive, all-in-one solution for app marketers. By coming together with AppLovin, we can realize our vision and create a brand new product suite that will accelerate every app marketer’s growth”
AppLovin and Adjust have partnered up to launch the Adjust Growth Scholarship. This initiative is aimed at helping new app developers “grow and thrive”. Successful applicants will be granted full access to Adjust’s platform, consultations and capital.