Ad tech firm Videology has filed for chapter 11 bankruptcy protection and announced that Amobee will be purchasing a large portion of its assets in a deal thought to be worth $45m (£33m).
Videology was founded 10 years ago, and has raised around $200m in funding since its launch, with investors including US telecoms provider Comcast. The company focused on bringing together traditional TV and digital video advertising, and had partnered with programming providers including Sky and Univision in the past. Earlier this year, the firm underwent a restructure that resulted in six per cent of its global workforce being let go.
"We are confident that today's transaction represents the best path forward for Videology and is in the best interests of all our stakeholders," said Scott Ferber, CEO and founder of Videology. "Most importantly, we anticipate it being seamless for our valued clients and partners, while providing Videology the financial stability and strategic position to drive future growth.
"Over the past decade Videology has successfully established ourselves as a leading provider of the software for the convergence of TV and video and have built a client list comprised of some of the biggest names on both demand and supply-side of the market. However, the industry is only in the early-stages of the TV and video advertising transformation that we were built to power, and it will take resources, capital and time to help transform a market as large as TV.
"The bottom line is that these moves put us in the best possible position to achieve our ambitions goals, and we remain dedicated to our mission of driving outstanding advertising results for our customers during this process - without interruption."
Amobee's conditional asset purchase will have to be approved by US courts, but if it goes through, the acquisition will likely help the firm, which is owned by Singaporean telecom leader Singtel, expand the range of digital services it offers. Last year, the company acquired data management platform Turn for $310m in a similar push towards strengthening its offering.