Ad tech company MediaMath, a pioneer in programmatic advertising, has secured $225 million in financing from investment firm SearchLight Partners.
The funding, according to the company, will be used to accelerate its demand-side platform (DSP) – technology that lets advertisers and their agencies buy online ads using automated systems – and data management platform (DMP) which lets advertisers store and analyse their data.
This is set to be delivered in two tranches to pursue both “organic” and “inorganic” growth initiatives.
SearchLight Partners’ financing brings MediaMath’s total capital invested to over $500 million.
According to The Wall Street Journal, some of the funds will be distributed towards the ad tech firm’s investors, Safeguard Scientifics, while the investment will also be used on acquisitions and development of areas such as identity, artificial intelligence, connected-television and digital out-of-home advertising.
“MediaMath is executing on a successful and accelerated growth plan that has been facilitated by both organic investment and mergers and acquisitions,” said Franklin Rios, global head of corporate development at MediaMath; “Searchlight’s investment will ensure that we continue on our path of consistent and profitable growth, with the support of a long-term, strategically oriented partner.”
MediaMath’s investments come amid a period of consolidation in the ad tech space, with the likes of AppNexus, which was acquired by US-based telecom giant AT&T for a reported $1.6 billion last month.