In a strategic move that solidifies the mobile intelligence industry, Sensor Tower, a prominent app analytics firm, is acquiring its rival Data.ai. This acquisition will create a dominant force in the sector, providing valuable insights into the app economy.
Sensor Tower and Data.ai specialize in helping businesses and developers understand the performance of mobile apps. They offer estimates on downloads, active users, in-app revenue, and market traction among specific demographics and competitors.
Despite the acquisition, Sensor Tower mentioned that both platforms will continue to offer their services independently, with no immediate plans for consumer-focused changes.
In a statement, Sensor Tower CEO Oliver Yeh expressed admiration for Data.ai’s product and team, emphasizing how the acquisition will expand the reach of Sensor Tower’s top-tier offerings in the digital economy.
While the financial details of the deal were not disclosed, Bain Capital and Riverwood Capital are providing credit-based financing, and Paramark Ventures has made an undisclosed investment in Sensor Tower.
This acquisition is expected to have a significant impact on the marketing landscape, especially in measuring the digital economy, according to Paramark’s managing partner Chunsoo Kim.
Despite competition from other players like SimilarWeb and AppFigures, Sensor Tower and Data.ai were each other’s main rivals in the industry.
History of the Companies
The acquisition was surprising given that Data.ai had received significantly more funding than Sensor Tower. However, a regulatory penalty against Data.ai might have played a role in the acquisition.
In 2021, Data.ai faced charges of securities fraud by the U.S. Securities and Exchange Commission (SEC) for deceptive practices in data collection, resulting in a $10 million settlement. Conversely, Sensor Tower has also faced controversies related to data collection practices in the past.
Despite these challenges, both companies remain valuable assets for developers and businesses seeking deeper insights into user preferences. Publications like TechCrunch, The New York Times, and others frequently cite their services.
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