Xaxis’ premium ad serving technology Open Adstream (OAS) is set to come under ownership from AppNexus as the company builds off the back of fresh investment.
A deal for OAS is awaiting approval but is expected to be completed by the end of the year. Considering the reach AppNexus already has with its own ad-serving products – encompassing a regular trading desk and custom ad exchange – the company is hoping OAS could strengthen its reputation in the eyes of advertisers and publishers.
AppNexus also announced that it had raised $25 million in additional funding from ad holding company WPP. Reports indicate that a 15% stake in AppNexus has been exchanged as a result.
WPP has been in business with the $1.2 billion-valuated AppNexus for a number of years, holding a minor stake in the firm. The former also boasts signficant partner connections with Xaxis, which will now be able to see how one of its flagship products performs under the guidance of a new owner.
Early details suggest OAS – or Xaxis for Publishers as it is now known – could be set to gain a programmatic focus as AppNexus integrates some of its existing technology stack into the platform.
WPP CEO Martin Sorrell added weight to the claims by stating the investment fell in line with the company’s intention to grow presence in the fast-growing programmatic sector.
AppNexus CEO Brian O’Kelley described OAS as “one of the most effective and trusted ad serving platforms in the world for years” while declaring an aim to make it “#1 in programmatic”.
As for Xaxis, Brian Lesser, the company’s CEO, revealed that his company intends to apply a greater focus to some of its up-and-coming solutions.
“Xaxis is committed to building and partnering to provide world-class ad technology and solutions for our clients. This allows both companies to double down on what we do best,” he stated.
“We’re focusing our technology department on data management, decisioning and new products.”
Lesser added that OAS was in “great hands” as part of AppNexus.