Deal adds social and mobile targeting to
AcuityAds' programmatic marketing platform
TORONTO and SAN FRANCISCO, Aug. 11, 2016 /CNW/ -
AcuityAds Holdings Inc. (TSXV:AT) ("AcuityAds" or "Company"), a
technology leader that provides targeted digital media solutions
enabling advertisers to connect intelligently with audiences across
mobile, video, social and display, is pleased to announce that it
has entered into a definitive agreement to acquire industry-leading
social and mobile targeting company, 140 Proof, Inc.
140 Proof is a mobile tech company whose key product is a
high-scale interest-targeting tool for brands. By analyzing over 20
billion interest signals from a universe of over 700 million public
social profiles, the company models and sells custom audience
profiles and ad-targeting to brands. 140 Proof holds a patent
on its Blended Interest Graph technology, which powers its
Relevance API product.
The acquisition is an all-cash deal with a value up to
$20 million USD consisting of cash
and performance-based payments. 140 Proof was funded by Bluerun
Ventures, Founders Fund, and SV Angel.
The deal will enable AcuityAds to provide marketers with a
complete view of their prospective audience through intelligence
gained from social signals, thereby improving their digital media
campaigns. Mobile advertising revenue is estimated to reach
$43 billion worldwide by 2017 and by
leveraging 140 Proof's technology, the Company anticipates a
significant increase in its mobile revenues.
140 Proof's social data targeting technology adds to the suite
of AcuityAds' capabilities, alongside proprietary machine-learning
technology, real-time reporting and integration with the industry's
leading data management platform, Adobe Audience Manager, enabling
the Company to more effectively address the digital, social and
data-driven needs of today's marketer.
"Our vision has always been to create the most robust self-serve
programmatic marketing platform in the industry by enabling
marketers to target and connect more intelligently," stated
Tal Hayek, CEO of AcuityAds. "The
140 Proof acquisition accelerates our ability to leverage social
media data for brand advertisers and media companies to deliver
powerful targeted advertising at scale. We believe that this
acquisition will yield a game-changing audience targeting solution
for Acuity's customers and their digital marketing
initiatives."
Jon Elvekrog, CEO of 140 Proof
commented, "140 Proof has grown from a few coders in a San Francisco warehouse to one of the most
advanced social data machine learning companies in the Valley. We
deliver billions of socially targeted ad impressions to help global
brands such as General Motors, Kraft, ESPN, and Victoria's Secret
grow their businesses. By joining 140 Proof's social data product
and audience visualization tools with an industry leading
programmatic platform, 140 Proof and Acuity together create an
integrated social and programmatic powerhouse. We look forward to
introducing the combined offering and value proposition to our
customers and are excited to be joining the AcuityAds team."
It is expected that this transaction will be completed in the
third calendar quarter of 2016 and remains subject to the approval
of 140 Proof shareholders. The Board of Acuity and 140 Proof
have unanimously voted in favor of this transaction. The trailing
12-month pro-forma revenues for the period ended June 30, 2016 for the combined organization are
approximately $35 million CDN.
AcuityAds intends to finance the initial payment by utilizing
an updated banking facility with Silicon Valley Bank for additional
working capital as well as a minimum of $1.0
million CDN term loan with certain non-arm's length
lenders. AcuityAds will acquire 100% of 140 Proof's
outstanding common stock in exchange for a combination of cash and
performance based earn-outs which if met, could potentially value
this transaction at approximately $20
million USD. Under the terms of the agreement, 140
Proof will receive $3.0 million USD
on closing, with additional payments in performance-based earn-outs
to be achieved over a 3-year period, subject to the achievement of
certain gross profit and contribution margin milestones. Any
earn-out payments are expected to be self-funded and this
acquisition is expected to be accretive to AcuityAds'
earnings. No additional shares are being issued with respect
to the closing of this transaction. A copy of the transaction
agreement will be filed on the Company's SEDAR profile at
www.sedar.com. Ov2 Securities Inc. has advised AcuityAds on this
transaction and will receive an advisory fee of $100,000 USD. A director of AcuityAds is a
principal of Ov2 Securities Inc.
About 140 Proof
140 Proof is a native social advertising technology company that
uses social data to target relevant ads based on consumers'
interests. 140 Proof's patented Blended Interest Graph technology
incorporates over 20 billion interest signals and is unique in its
approach of analyzing connections over content. 140 Proof investors
include Silicon Valley notables BlueRun Ventures, Founders Fund,
and Ron Conway's SV Angel, among
others. The business is headquartered in San Francisco with sales offices in
Chicago, Detroit, New
York, Seattle and Los
Angeles. For more information, visit www.140Proof.com.
About AcuityAds
AcuityAds is a technology company that enables marketers to
connect intelligently with their most meaningful
audiences through digital media. At the core of its
offerings is a self-serve programmatic marketing
platform, powered by proprietary machine learning
technology. AcuityAds empowers marketers through its industry
leading advertising campaign solutions with real-time reporting and
analytics, bringing accountability to programmatic advertising to
deliver business results.
AcuityAds is headquartered in Toronto,
Canada with sales offices in New
York City, Los Angeles,
San Francisco, San Diego, Vancouver, Calgary and Montreal. For more
information, visit AcuityAds.com.
Disclaimer in regards to Forward-looking Statements
Certain statements included herein constitute "forward-looking
statements" within the meaning of applicable securities laws.
Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by
management at this time, are inherently subject to significant
business, economic and competitive uncertainties and contingencies.
Investors are cautioned not to put undue reliance on
forward-looking statements. Except as required by law, AcuityAds
does not intend, and undertakes no obligation, to update any
forward-looking statements to reflect, in particular, new
information or future events.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE AcuityAds Inc.