Mobile ad tech firm Taptica has acquired RhythmOne, which focuses on cross-screen digital advertising, for $176m (£135m). The all-stock deal is expected to close in early April, at which point RhythmOne will no longer be publicly traded on the London Stock Exchange.
RhythmOne will be combined with Tremor Video DSP, which Taptica acquired in August 2017, to create a sole video advertising company. The new enlarged group will be led by Ofer Druker, who currently leads Tremor Video DSP as executive chairman.
“We’re excited to announce the acquisition of RhythmOne, which will allow us to combine its strong pedigree in CTV media with Tremor Video DSP’s years of experience in TV retargeting to create a robust and powerful video company that will be able to offer a variety of advanced capabilities to our clients,” said Druker. “RhythmOne will also add to our media exchange capabilities through its Private Marketplace (PMP), helping us offer enhanced reach, quality and results.”
Taptica intends to use the acquisition to provide scale, while using RhythmOne’s audience data and analytics to create a full stack solution for advertisers. Meanwhile, it plans for YuMe, which was acquired by RhythmOne in September 2017, to work with Tremor Video DSP to provide ‘strong cross-selling opportunities.
“I believe this transaction best positions RhythmOne for the future,” said Eric Singer, non-executive chairman of RhythmOne. “As we look into and plan for our next fiscal year, combining RhythmOne and Taptica addresses the importance of scale in our industry. The transaction also leverages each company’s respective capabilities to provide a more comprehensive product offering, which will, we believe, offer significant revenue synergies to the benefit of our shareholders and employees.”