Ad tech provider Taptica announced this week that it will acquire cross-channel solutions provider RhythmOne for $176 million in an all-share merger deal, pending shareholder approval.
Taptica hopes to provide a more comprehensive product and supply advertisers with a more transparent buying experience. RhythmOne offers programmatic video capabilities based on an advanced media offering and as part of the acquisition, Taptica will be able to get assets from RhythmOne’s previous merger of video and CTV inventory provider YuMe as well as Burst Media.
Last year Taptica purchased Tremor Video DSP in August 2017, so the merge of the two businesses is expected to create “one of the leading video advertising companies in the US, delivering significant economies of scale, customer base and supply chains to compete with industry leaders.”
RhythmOne’s media exchange and partnerships with more than 4,000 publishers and YuMe, Tremor Video DSP and RhythmOne will continue to operate as separate divisions within Taptica. YuMe and Tremor Video DSP will work together with strong cross-selling opportunities, while the acquisition brings relationships with large-scale advertisers and access to premium inventory.
The purchase will allow Taptica to “combine its strong pedigree in CTV media with Tremor Video DSP's years of experience in TV retargeting to create a robust and powerful video company that will be able to offer a variety of advanced capabilities to our clients,” said Ofer Druker, executive chairman of Tremor Video DSP, in a statement.
The US market is set to be a key focus for the expanded group and the merger will, therefore, be “well-positioned to exploit the growing demand for connected TV. It will be able to offer a comprehensive technology platform to its customers with a full demand side and supply side offering to create interesting global opportunities,” added Taptica chairman Tim Weller.
The deal is expected to close in early April when RhythmOne’s employees will be offered to join Taptica’s headcount of 400 and Ofer Druker will be appointed CEO of the merged group.