Tremor International to acquire Amobee for $239m

Video, data and connected television advertising technology company Tremor International has agreed to acquire Amobee for $239m, it announced on Tuesday, subject to adjustments.

The AIM-traded firm said it would satisfy the consideration through a combination of existing cash resources and a new $100m debt facility it expected to obtain before closing.

As of 30 June, it had a net cash balance of $360m, with the board adding that it also expected to obtain a $50m revolving credit facility which, along with existing surplus cash resources, would be available for future strategic investments and initiatives.

The transaction was expected to close in the third quarter, subject to customary closing conditions including regulatory approval or the expiration of the required waiting period under US antitrust regulation.

Tremor described Amobee as a “leading global advertising platform” that “optimises outcomes” for advertisers and media companies, improves consumer experiences, and optimises cross channel performance across linear, connected TV, and digital media, while providing detailed analytics and reporting.

It serves more than 500 customers globally, and operates across three core business segments - the omnichannel demand side platform, the Amobee advanced TV platform, and the email marketing platform.

Through the transaction, Tremor said it would acquire Amobee's omnichannel demand side platform and advanced TV platform, but would not acquire its email marketing platform and related current and historical liabilities, which were expected to remain with the seller, Amobee Group.

“The acquisition of Amobee is expected to build upon Tremor International's growth strategy and proven track record of successfully integrating companies that enhance and expand the capabilities and scale of its data-driven end-to-end technology and business platform, focused on connected TV and video,” said Tremor chief executive officer Ofer Druker.

“Amobee would add several capabilities including campaign execution across linear and digital channels within a single platform.”

Druker said the transaction would also fulfil the company’s strategy to add “significant” global scale and self-service growth to its demand side platform, increase its US and international customer reach and data footprint, and drive more advertiser spend to its SSP, ‘Unruly’.

“We've recently achieved a number of important milestones that we believe will further scale and differentiate our platform including the agreement to acquire Amobee and deepening our strategic relationship with VIDAA through a $25m investment, which combined is expected to generate long-term value for our shareholders.”

At 1545 BST, shares in Tremor International were up 1.67% at 425.4p.

Reporting by Josh White at Sharecast.com.