ADman Media is the Largest Video Supply Side
Platform for Spanish-speaking Markets
TORONTO and NEW YORK, Feb. 28,
2018 /CNW/ - AcuityAds Holdings Inc. (TSXV:AT)
("AcuityAds" or the "Company"), a technology leader that provides
targeted digital media solutions by leveraging its proprietary AI
technology to enable advertisers to connect intelligently with
audiences across video, mobile, social and online display
advertising campaigns, is pleased to announce that it has entered
into a definitive agreement to acquire ADman Interactive S.L.
("ADman Media"), the largest video Supply Side Platform (SSP) for
Spanish-speaking markets in Europe
and Latin America.
The Company believes that this acquisition:
- Expands the Company's total addressable market by entering the
publisher-direct video supply market
- Provides complementary and incremental revenue opportunities
for the Company to leverage ADman Media's unique inventory and
video ad streaming platform in the U.S., which is the second
largest Spanish-speaking country in the world, according to the
Instituto Cervantes.
- Extends the Company's global footprint across 9 additional
markets in Europe, Latin America and the U.S.
AcuityAds intends to leverage its expanded global footprint to
position itself as the premiere advertising platform for brands
seeking to reach Spanish-speaking audiences in Europe, Latin
America or the United
States. In addition to this tremendous market
opportunity, AcuityAds also fully intends to extend this unique and
differentiated technology offering beyond the Spanish-speaking
markets currently served by ADman Media.
This acquisition also enables AcuityAds to expand its total
addressable market in the digital advertising ecosystem by gaining
more control of the publisher-direct, advertising supply chain.
Through direct access to premium publisher inventory,
AcuityAds will be able to offer clients access to unique,
people-based targeting solutions and high-quality media that is
expected to measurably improve media effectiveness and return on
advertising spend (ROAS).
About ADman Media
Founded in 2010, ADman Media has developed a video Supply Side
Platform (SSP) for native formats. ADman Media's video SSP
solution enables the seamless distribution of advertisers' video
content through high quality publishers to achieve optimum
engagement with audiences and maximize publisher revenues.
ADman Media is headquartered in Spain and has sales offices in the U.S.,
France, Argentina, Brazil, Chile, Colombia and Mexico.
"The ADman Media team has built a leadership position in the
core markets that they serve with their video SSP which maximizes
revenue for publishers more efficiently versus other video
solutions in the market," stated Tal
Hayek, Chief Executive Officer of AcuityAds. "This
acquisition will complement our industry leading AI-powered
programmatic offerings for brands and agencies with a unique and
differentiated publisher-direct offering and will enable AcuityAds
to participate in a larger share of the digital advertising
ecosystem to help advertisers and publishers drive greater returns
from their digital spend."
Marcos Luengo, Co-Founder &
Chief Executive Officer of ADman Media stated, "We are excited to
be joining forces with AcuityAds, a recognized industry leader in
programmatic advertising. I believe that by leveraging
AcuityAds' technology offerings as well as its large U.S. client
base and sales force, this transaction will provide a tremendous
growth opportunity for our combined offerings with both publishers
and advertisers."
Transaction Highlights
- This acquisition is in line with AcuityAds' stated strategic
priorities to actively pursue acquisition targets that
strategically fit the Company's vision and foster long-term growth
in both revenue and profitability.
- AcuityAds will acquire 100% of the common stock of ADman Media,
an arm's length party, in exchange for a combination of cash and
earn-outs.
- In 2017, ADman Media delivered approximately 55% of its revenue
in Europe and 45% in Latin America and the U.S.
- Under the terms of the definitive agreement, the acquisition is
an all-cash deal and ADman Media's shareholders will receive an
initial cash payment of €1.7 million (net of working capital
adjustments and assumed long-term, which will be verified after
closing). The remainder of the purchase price to be paid over a
three year period if ADman Media reaches certain targets, with
approximately 50% to be paid if ADman Media meets or exceeds
certain contribution margin targets and the other 50% to be paid if
ADman Media meets or exceeds certain revenue growth targets, to a
maximum of €12.0 million.
- AcuityAds intends to finance the acquisition by leveraging
available credit facilities. In addition, the Company may require
equity financing to complete the acquisition.
- The acquisition is expected to be accretive to the Company's
financial performance in 2018, excluding one-time transaction and
integration costs.
- The closing of the acquisition is expected to be completed in
the second calendar quarter of 2018.
- Closing remains subject to the satisfaction of certain
pre-closing conditions, including the approval of the TSX Venture
Exchange and satisfactory financing arrangements.
About AcuityAds:
AcuityAds is a technology company that enables marketers to
connect intelligently with their most meaningful audiences through
digital media. A Self-Serve programmatic marketing platform,
powered by proprietary machine learning technology, is at the core
of its business, accompanied by a patented solution for mobile
targeting that leverages social data. AcuityAds empowers marketers
by offering transparency on costs and brand safety, and real-time
reporting and analytics, bringing accountability to programmatic
advertising to deliver business results.
AcuityAds is headquartered in Toronto,
Canada with offices across North
America including New York
City, Boston, Chicago, Los
Angeles, San Francisco,
Las Vegas, Vancouver, Calgary and Montreal. For more
information, visit www.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 include, but are not limited to,
statements with respect to the acquisition of ADman Media,
including the source of the proceeds to fund the acquisition, the
closing date, ADman Media's expected revenue and contribution to
financial performance. 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. Forward-looking statements involve
known and unknown risks, uncertainties and other factors that may
cause the actual results, performance or achievement of the Company
to be materially different from any future results, performance or
achievements express or implied by such forward-looking statements.
Such factors include, among other things, the achievement by ADman
Media of certain financial targets and the ability of the Company
to leverage its existing credit facilities and/or enter into new
facilities to fund the acquisition. 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 Holdings Inc.
