IZEA Signs Definitive Agreement to Acquire Leading SaaS Influencer Marketing Platform TapInfluence

operator of IZEAx®, the premier online marketplace connecting brands and
publishers with influential content creators, today announced it has
reached a definitive agreement to acquire TapInfluence, Inc. in a
part-cash, part-stock transaction. TapInfluence is a leading platform
and online marketplace for brands and agencies to execute influencer
marketing campaigns. The acquisition will augment IZEA’s software as a
service customer base, and provide additional technology capabilities
which will eventually be integrated into IZEAx.

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IZEA Signs Definitive Agreement to Acquire Leading SaaS Influencer Marketing Platform TapInfluence. (Photo: Business Wire)

Headquartered in Silicon Valley, TapInfluence operates a SaaS based
online marketplace that enables marketers to access an opt-in network of
more than 87,000 registered online influencers ranging from mommy
bloggers to Instagram celebrities. The TapInfluence network will
complement IZEA’s own opt-in network of more than 700,000 registered
Creator accounts ranging from online influencers to award-winning
freelance journalists.

TapInfluence is backed by leading venture capital firms including
Grotech Ventures, Noro-Moseley Partners and Access Venture Partners, who
will become IZEA stockholders as part of the transaction.

TapInfluence’s revenues for the year ended December 31, 2017 were
approximately $5.9 million and its gross billings were approximately
$18.2 million. Approximately 65 percent of TapInfluence’s 2017 revenues
came from SaaS subscriptions, 30 percent from marketplace revenues and 5
percent from other services. For 2017, combined annual revenues of IZEA
and TapInfluence would have been in excess of $30.3 million, with gross
billings of approximately $47.4 million.

“We are bringing together two of the leading companies in the influencer
marketing space, creating an influencer marketing offering that is
unparalleled in the industry, and providing the critical mass necessary
for making significant inroads on several fronts,” stated Ted Murphy,
Founder and CEO of IZEA. “Our goal is to provide both marketers and
influencers with the best possible experience. This combination will
allow us to further enhance our technology, significantly increase
marketplace liquidity, and provide incredible customer service. In
addition to customer benefits, the efficiencies gained from
consolidating our operations will also enhance our bottom line.”

IZEA will acquire TapInfluence through a merger agreement and
TapInfluence will become a wholly owned subsidiary of IZEA, Inc. upon
closing. Total consideration for the transaction in cash and stock is
estimated at $7.08 million based on IZEA’s stock price as of market
close on July 11, 2018. IZEA will issue $1.5 million in cash, subject to
working capital adjustments, and 1.15 million shares of common stock at
closing. One additional payment of $1 million will be due in cash or
stock at IZEA’s option six months after closing. A second additional
payment of $3.5 million will be due in cash or stock at IZEA’s option
twelve months after closing.

“There is a real opportunity for consolidation in the Influencer
Marketing space,” commented Mike Elliott, Managing Partner at
Noro-Moseley, a longstanding TapInfluence investor. “By bringing
together these two leaders, we are able eliminate a lot of duplicative
spending that wasn’t providing any incremental value to either company’s
end customers. With a larger revenue base and consolidated expenses, we
are able to invest more in the things that make a difference for our
customers and take advantage of the best aspects of each organization.”

“The combined organization will wind up with better technology, better
service, and a more diversified customer base. Together, we are poised
to grow and capture additional share from both marketers and
influencers,” added Elliott.

IZEA intends to close the merger transaction prior to month end.

About IZEA

IZEA operates IZEAx, the premier online marketplace that connects
marketers with content creators. IZEAx automates influencer
marketing and custom content development, allowing brands and agencies
to scale their marketing programs. IZEA influencers include everyday
creators as well as celebrities and accredited journalists. Creators are
compensated for producing unique content such as long and short form
text, videos, photos, status updates, and illustrations for marketers or
distributing such content on behalf of marketers through their personal
websites, blogs, and social media channels. Marketers receive
influential content and engaging, shareable stories that drive
awareness. The stock of IZEA is traded on the Nasdaq Capital Market. For
more information about IZEA, visit https://izea.com/.

Safe Harbor Statement

This press release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements, and terms such as “anticipate,” “expect,”
“intend,” “may,” “will,” “should” or other comparable terms, are based
largely on IZEA’s expectations and are subject to a number of risks and
uncertainties, certain of which are beyond IZEA’s control. Actual
results could differ materially from these forward-looking statements as
a result of, among other factors, inability or delay in integrating the
operations and technologies of TapInfluence and IZEA and the attainment
of expected benefits from the transaction, competitive conditions in the
content and social sponsorship segment in which IZEA operates, failure
to popularize one or more of the marketplace platforms of IZEA and
changing economic conditions that are less favorable than expected. In
light of these risks and uncertainties, there can be no assurance that
the forward-looking information contained in this press release will in
fact occur.

View source version on businesswire.com: https://www.businesswire.com/news/home/20180712005149/en/

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