Magnite has acquired SpotX for $1.17 billion in a deal that will form one of the largest independent connected TV and video advertising programmatic platforms.

The purchase price consists of $560 million in cash and 14 million shares of Magnite stock based on the closing price of Magnite stock as of February 4, 2021. The companies expect the transaction to close in the second quarter of 2021.

Magnite said it hopes by acquiring SpotX that it can provide better support for sellers and create an alternative to the connected TV advertising market’s largest players, which includes FreeWheel and Xandr Monetize.

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“Sellers have been looking for a scaled independent alternative to the giant companies who dominate the CTV marketplace,” said Michael Barrett, president and CEO of Magnite, in a statement. “The combination of Magnite and SpotX will make this a reality by bringing together the best CTV technologies and teams at a critical time. Ad-supported CTV is just beginning to draw budgets from linear TV and we will be well-positioned to participate in the strongest segment of industry growth for the foreseeable future.”

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“As CTV flourishes and the media industry continues to turn to programmatic, there is a huge opportunity for an independent scaled company to offer the single most comprehensive technology in the market,” said Mike Shehan, co-founder and CEO at SpotX, in a statement. “We built SpotX with the mission of becoming the leading global video advertising platform, and our goal is now coming to fruition with Magnite. I am thrilled about what we will achieve together.”

RTL Group CEO Thomas Rabe said the combination of Magnite and SpotX will allow for “significant value creation and upside potential for the parties, sellers and advertisers.”

Magnite plans to finance the transaction with cash on hand, 14 million shares issued to RTL Group and committed financing from Goldman Sachs. The company is expecting more than $35 million in run-rate operating cost synergies.



Source Google News