Deal will help Bloomberg to leverage big data to glean insights into consumer behavior and company performance.
Bloomberg this week announced that it has completed its acquisition of San Mateo, CA based startup Second Measure. Second Measure is a consumer data analytics company that helps investors and businesses gain insight into company performance and consumer behavior. It does this by analyzing billions of anonymized purchases.
Bloomberg wants Second Measure’s proprietary analytics for daily tracking and real-time exploration of thousands of public and private companies. This will give users insights that complement Bloomberg’s current offering of company fundamentals and market data.
Acquisition driven by demand
The acquisition reflects the fast-growing demand for alternative data by investment firms pursuing more data-driven investment strategies. This demand has in turn resulted in an overabundance of new datasets that present significant challenges in acquiring and processing the data. It has become increasingly difficult to derive actionable insights, especially for firms that do not maintain large in-house data science teams.
Second Measure decodes transaction data that is typically difficult to decipher, according to the company. Their solution enriches and normalizes the data, and produces insights and visualizations that are directly consumable through a web application.
Second Measure adds value to investment strategies
Second Measure’s broad coverage of thousands of companies and brands helps users streamline their research and analytics workflow. Investors can thus identify fast-growing consumer companies. This in turn helps them gain industry insights, validate investment theses, and track company performance intra-quarter. Consumer brands can gain competitive intelligence, determine growth strategies, and analyze consumer spending patterns, according to the company.
Shawn Edwards, Chief Technology Officer at Bloomberg, commented on the deal. “Our clients are increasingly incorporating non-traditional data in their investment and business strategy decisions,” he explained.
“We’re committed to helping them extract high-value insights from those datasets faster, through innovative technologies and sophisticated models like those developed by Second Measure,” he added.
“By combining our strengths, we will be able to expand access to this intelligence and reinforce our commitment to providing transparency and discoverability of high-impact data.”