Netherlands-based telecoms company Altice has acquired video ad marketplace Teads in a transaction worth €285 million.
The acquisition is part of Altice’s global advertising strategy, geared at providing its clients with data-driven and audience-based solutions across devices, and is expected to bring immediate commercial benefits to Altice’s advertising business as it opens up its unique first-party database to Teads in the US and France.
Since its foundation in 2011, Teads has built a reputation as an investor and pioneer in outstream video advertising, as well as a programmatic buying marketplace, and represents one of the largest players in the growing programmatic video industry. Last year the company achieved record results as its revenue grew by 44% to €187.7 million.
Altice’s CEO, Michael Combes, believes the deal will be key in offering a “truly unique proposition” not only for brands and agencies but also the media industry, programmers and distributors.
While the acquiring firm will benefit from Teads’ powerful platform, relationships with advertisers and premium publisher partnerships, the video ad marketplace is expecting to gain from Altice’s analytics capabilities and global data sets.
Commenting on the acquisition, Teads’ executive chairman, Pierre Chappaz, who co-founded the company alongside Bertrand Quesada, called the buyout a “new phase” for the company, providing a launchpad to diversify and grow its current product offering based on “measurable performance” and “technological innovation”.
“As part of Altice, we will be able to offer even more tailored, data-driven solutions and take our value proposition from the digital world to a multiscreen platform, which includes TV, digital, mobile and tablets,” he said.
“It is that value proposition – data-driven, measurable and multiscreen – which will enable us to significantly grow our advertising business. We are very excited to partner with Pierre, Bertrand and their talented team,” Combes added.
Teads’ senior management will continue to lead the business while Chappaz will join Altice’s management board for advertising activities. With the deal value depending on Teads achieving revenue targets this year, the acquisition, subject to competition reviews, is expected to close in mid-2017.