DiscoverOrg’s NeverBounce Acquisition

The DiscoverOrg acquisition of NeverBounce was in the works for six months and began with DiscoverOrg’s search for a verification vendor that could better handle large scale processing.  “It’s a core competency we wanted to own,” said DiscoverOrg CEO Henry Schuck.

DiscoverOrg is retaining the NeverBounce team of fifteen, but shuttering its smaller Salt Lake City office with employees being relocated to Cleveland. The acquisition was announced on March 5th.

NeverBounce 2018 revenue was $4 million and included both B2B and B2C marketing file enhancement revenues.  Terms of the deal were not disclosed.

NeverBounce will continue as both a standalone offering and be integrated into the merged DiscoverOrg / Zoominfo platform.  The combined platform is planned for launch in five months.

“When we made the ZoomInfo acquisitions, the promise was that this would strengthen differentiators around the quality of data we deliver.  The NeverBounce acquisition is a very clear incremental addition to that value.  It helps us enhance the quality of information we deliver immediately.”


DiscoverOrg President Katie Bullard

If you count Zoominfo’s September acquisition of Datanyze, DiscoverOrg has acquired three companies in the past six months.  The transaction doubled the company headcount to around 1,000 employees.  But Schuck isn’t closing the door on acquisitions saying that he will be opportunistic in his approach.

“There are a lot of companies in our space that we follow,” he said.  “If the opportunity is right, we have been quick to do acquisitions.  There’s a big opportunity for consolidation in our industry so that customers don’t have to go to 19 different vendors for data and data cleansing needs.”


Previous Blog: News Alert: DiscoverOrg Acquires NeverBounce

News Alert: DiscoverOrg Acquires NeverBounce

DiscoverOrg announced another acquisition this morning, its third in the past eighteen months.  NeverBounce, an email verification and list cleansing service, is being folded into DiscoverOrg.  NeverBounce offers real-time email verification, a verification API, a JavaScript widget for webforms, and free email list analytics.  Connectors are available for a broad set of MAPs and Email Services including Marketo, Eloqua, HubSpot, Pardot, MailChimp, and Constant Contact.

NeverBounce claims a 99.9% email delivery rate and a 97% SLA.  Emails are classified into five categories: Valid, Invalid, Accept All, Unknown and Disposable.  The service confirms that domains are live, flags duplicates, and repairs syntax prior to processing.

“A big part of our value proposition to customers is we provide the highest quality data in the marketplace. A big part of that is ensuring the email addresses are deliverable and high accuracy.”

DiscoverOrg CEO Henry Schuck

Integration will be a significant operational issue for DiscoverOrg.  While they previously acquired iProfile and RainKing, those were similar companies, so the integration was focused on quickly reprocessing their datasets through DiscoverOrg editorial validation and migrating customers to the DiscoverOrg platform.  The recent acquisitions – NeverBounce, Zoominfo, and Datanyze, which was acquired by Zoominfo in September – are complementary assets so merging applications present a greater level of technical risk than their previous acquisitions.  However, email validation is already part of ongoing data quality processes at Zoominfo and DiscoverOrg, so the execution risk associated with NeverBounce is lower than Zoominfo and Datanyze.

NeverBounce is a logical acquisition following Zoominfo as it allows them to build email hygiene services into Zoominfo and DiscoverOrg while reducing the cost of email validation across Zoominfo and DiscoverOrg’s set of contact profiles with emails.  Over the past few years, the sales intelligence vendors have been building out B2B marketing services including email verification, data enrichment, and ICP / TAM analysis.  As DiscoverOrg has long positioned itself as the highest quality source of executive contacts, NeverBounce helps burnish that positioning as they expand their contact coverage twenty-fold.

“While finding net new buyers is always going to be vital to sales and marketing efforts, it has become equally as important to manage, update and cleanse existing data that is going stale sitting in CRM and marketing automation systems.  Our partnership with NeverBounce makes solving both of these challenges easier for our customers.”

DiscoverOrg President Katie Bullard

“When we announced the combination of DiscoverOrg and ZoomInfo, we promised to deliver on the B2B data trifecta: the best, bar-none, quality, quantity, and depth, and this announcement only reinforces our quality differentiator in the market,” said DiscoverOrg CEO Henry Schuck.  “We are now embedding NeverBounce’s email verification tools directly into our data and research team’s processes to lower the email bounce rates in both platforms AND over the next few months, we will integrate it into several of our customer-facing tools, including our data enrichment platform, Enrich.”

NeverBounce Volume Pricing

NeverBounce will continue as a standalone data hygiene offering.  DiscoverOrg and Zoominfo may purchase NeverBounce services at a discounted rate.  NeverBounce list pricing begins at 0.8 cents on 10,000 processed emails and drops to 0.3 cents on one million records.  Marketers can pay for each list or purchase credits in bulk.  There is no charge for de-duplication services.  There is also no charge for manual list reviews kicked out by the platform to their deliverability team.

A 10,000-record file is processed in two to ten minutes with 100,000 records processed in 45.  NeverBounce claims bank-level security and European privacy support (GDPR and the EU-U.S. and Swiss-U.S Privacy Shield Frameworks).

“I’m thrilled to partner with DiscoverOrg to extend our mission to improve the success of go-to-market efforts,” says Brad Owen, NeverBounce CEO.  “Every bad email address can cost an organization up to $11 per record, which equates to millions of wasted dollars for many companies.  Together, DiscoverOrg and NeverBounce are committed to ending the curse of bad sales and marketing data.”

NeverBounce has 100,000 clients and was established in 2014.  The acquisition price was not disclosed.  NeverBounce has fifteen employees and will retain its office in Cleveland with Salt Lake City employees being relocated.


Update (3/5/19 5:30 PM EST) Amended the last sentence about employees.