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.

E-commerce startup MikMak has acquired the shoppable media and brand analytics arm of rival ChannelAdvisor for an undisclosed amount.

Big consumer packaged goods brands use MikMak’s technology to make digital ads shoppable by linking them to product pages on Target, Amazon, and Walmart. MikMak gives brands sales data about what people bought after clicking on an ad.

The acquisition will let MikMak grow to 1,200 CPG clients, including Diageo and Hershey’s. ChannelAdvisor also works with consumer electronics, home improvement, and automotive parts brands that are new categories for MikMak, said founder and CEO Rachel Tipograph.

Tipograph said the deal will increase both revenue and headcount by 50%. With the new employees from ChannelAdvisor, MikMak will have 175 staffers.

E-commerce M&A has grown significantly as brands look for more data and technology to handle retail advertising. Retail media has exploded in growth as retailers like Walmart and Best Buy build out their own advertising businesses, and Morgan Stanley projects it will be a $130 billion industry by 2025.

Tech firms like MikMak and others are racing to own more of that business. In buying part of ChannelAdvisor, MikMak inherits analytics that advertisers want to justify increasing ad spend with retailers.

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

Tipograph said brands want to work with fewer e-commerce partners, leading to consolidation.

This is the second acquisition MikMak has made this year. In February, MikMak acquired Swaven for an undisclosed amount to grow its international footprint. MikMak has raised $19 million in funding, according to PitchBook.

ChannelAdvisor is owned by private equity-backed CommerceHub and also sells tools that help brands with digital marketing, content, and feed management. Those tools will still be sold by ChannelAdvisor. As part of the deal, MikMak and ChannelAdvisor will cross-sell their products.