LONDON (ShareCast) - (Sharecast News) - DotDigital announced the acquisition of US-based influencer and affiliate marketing platform Social Snowball for up to $35m on Thursday, as it continued to expand its customer experience and data platform offering.
The AIM-traded firm said the deal was expected to be immediately earnings enhancing.

It said the acquisition comprised an initial cash payment of $20m and an earn-out of up to $15m over two years, funded from existing cash reserves.

"This acquisition marks another milestone in our CXDP vision," said chief executive Milan Patel.

"Social Snowball brings a highly complementary asset to our product portfolio, enhancing our market position as a one-stop-shop for seamless, cross-channel marketing automation and creating valuable cross-sell opportunities.

"We are delighted to welcome Noah and his team to the Dotdigital family, and we look to the future with confidence."Social Snowball, which integrates with Shopify and has over 1,500 subscription customers, reported revenue growth of 200% to $3m in 2024, with a run-rate revenue of over $5m at the time of the acquisition.

The business became cash flow positive in the first half of 2025.

DotDigital said the acquisition would strengthen its position in the fast-growing influencer, affiliate and referral marketing space, enhance its offering to e-commerce customers, and expand cross-sell and up-sell opportunities within its customer base.

The company highlighted that Social Snowball would boost its average revenue per customer and open new high-margin recurring revenue streams.

Noah Tucker, founder and CEO of Social Snowball, would remain with the business and lead the platform from the US.

"From the onset, it was clear that this was the right fit for both our team and our customers," he said of the acquisition.

"I look forward to working together and helping more customers increase revenues, expand their brand awareness, boost engagement and drive growth."

In a trading update, DotDigital said full-year revenue was expected to be in line with market expectations on a constant currency basis, after adjusting for the decision not to renew a low-margin £4.4m transactional SMS contract.

The company said the decision, which would have minimal impact on adjusted EBITDA and PBT forecasts, reflected its focus on higher-margin growth areas.

It said it remained underpinned by a strong balance sheet as it continued to explore further merger and acquisition opportunities aligned with its long-term growth strategy.

A further trading update for the year ending 30 June would be provided in late July.

At 1452 BST, shares in dotDigital Group were up 3.84% at 75.8p.

Reporting by Josh White for Sharecast.com.

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