Millennial Media has acquired mobile ad network Jumptap, for a stock transaction equivalent to around $209m (£135m).
Under the terms of the agreement, Jumptaps shareholders will receive approximately 24.6m shares in Millennial Media, a 22.5 per cent stake in the company. At the current share price of $8.50, thats worth $209.1m.
Following the acquisition, Jumptaps offering – which includes 100m unique user profiles, 44m of them multiscreen, and a portfolio of 55 issued patents and 50 pending – will be incorporated into Millennials platform.
“Millennial Media already runs one of the largest third-party digital media businesses, despite mobile being in its early stages. Jumptaps expertise in performance, cross-screen, real-time bidding and third-party data fit well with, and provide incremental scale to Millennial Medias existing platform,” said Paul Palmieri, president and CEO of Millennial Media. “Millennial and Jumptap are both pure-plays in mobile. By combining our complementary strengths, we can take a leadership role in solving the hardest problems in mobile and cross-screen for advertisers and developers.”
The news comes as Millennial announces its results for Q2, 2013. The company reported revenues of $57m, a 45 per cent increase year-on-year, and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) of £1.9m – but a net loss of $3.1m.
Millennial projects combined revenues of $340-350m for the two companies for 2013, based on Millenials previous forecast of $270-280m and Jumptaps forecast of $63.6m. Combined EBITDA are predicted to fall somewhere between a loss of $1m and positive $1m.
Weve reached out to both Millennial Media and Jumptap for comment, and will be updating the story as and when we hear back. Watch this space.