Data.ai had previously been charged with securities fraud by the U.S. Securities and Exchange Commission (SEC) and agreed to pay a $10 million settlement. Sensor Tower has also faced criticism over its data collection practices. Despite these controversies, both companies remain valuable to developers and businesses seeking to understand user preferences. They are frequently cited by major publications, including TechCrunch, The New York Times, The Wall Street Journal, CNBC, Bloomberg, and The Verge.
Key takeaways:
- Sensor Tower, an app analytics firm, is acquiring its rival Data.ai, consolidating the mobile intelligence industry and potentially dominating the sector.
- Both Sensor Tower and Data.ai provide insights into mobile app performance, including estimates on downloads, active users, in-app revenue, and demographic and competition benchmarks.
- The financial terms of the deal were not disclosed, but it was revealed that Bain Capital and Riverwood Capital are providing credit-based financing, and Paramark Ventures has invested an undisclosed amount in Sensor Tower.
- Both companies have faced controversies and regulatory penalties related to their data collection practices, but they continue to be valuable to developers and businesses seeking to understand user preferences.