US-based video, data and CTV advertising company Tremor International announced on Monday that it has agreed to acquire ad-tech platform Amobee for $239 million to expand its business in the United States and internationally.
The amount of the deal is far less than what Singtel, a Singaporean telecommunications company, paid for the acquisitions of Amobee in 2012: $321 million. However, Singtel has been looking to sell the ad platform for some time. The company previously said in a statement that it had placed the platform under ‘strategic review’ in May 2021, and categorized it as ‘a subsidiary held for sale’ after reporting an ‘exceptional’ S$310 million impairment charge earlier this year.
A month after SkyNews reported that Tremor was in talks with Singtel for the acquisition of Amobee, the company confirmed the deal yesterday which it said would ‘’create one of the most compelling and scaled CTV and video end-to-end platforms in the market.’’
Ofer Druker, CEO of Tremor International, said, “The acquisition of Amobee is expected to build upon Tremor International’s growth strategy and proven track record of successfully integrating companies that enhance and expand the capabilities and scale of its data-driven end-to-end technology and business platform, focused on CTV and video.”
Founded in 2005 by Gil Shulman, Harry Dewhirst, Saul Rurka, Amobee’s advertising solutions were mainly concentrated on the mobile side until a few years ago. The company stepped into the CTV advertising business in 2020 with the launch of its TV Amplifier solution to help advertisers run ads across CTV and digital channels.
Amobee’s net cash balance is nearly $360 million and its omnichannel demand-side, advanced TV and email marketing plarforms are currently used by over 500 global clients such as Mastercard, Skype, Verizon, McDonalds, Pizza Hut and Johnson & Johnson.
The transaction, which is expected to close in the third quarter of 2022, will cover Amobee’s demand side platform and advanced TV platform, said Tremor.
The company said it expects to see financial growth within the first year following the completion of the acquisition.