RhythmOne to acquire YuMe in $185m cash-and-shares deal
Rhythmone
169.50p
16:34 29/03/19
RhythmOne announced on Tuesday that it has entered into a definitive agreement with NYSE-listed YuMe to acquire all of its issued and to-be-issued share capital for a total consideration of $185m based on current exchange rates.
FTSE AIM 100
3,593.44
16:54 04/10/24
FTSE AIM All-Share
738.36
16:54 04/10/24
Software & Computer Services
2,450.62
17:14 04/10/24
Yume Inc. Dl -,001
€3.40
19:59 22/03/17
The AIM-traded firm said the consideration would be provided one-third in cash and two-thirds in shares, with the value based on 34.7 million shares in YuMe in issue as at 31 August.
It said the acquisition was expected to close in the first calendar quarter of 2018.
“The acquisition of YuMe perfectly aligns with the company's mission to create a unified marketplace that is efficient and effective for advertisers,” said RhythmOne chairman Raj Chellaraj.
“YuMe's demand-side strengths and innovation in video advertising complement the programmatic platform that RhythmOne has built over the last three years.”
Chellaraj said the combined offering and the scale it would bring - both commercial and financial - would offer “real differentiation” in the marketplace.
“I am confident that this transaction will serve to drive value for shareholders and partners alike, and represents a strong strategic move for the company.”
Strategically, RhythmOne said it believed the Acquisition would result in a combined entity with a “complete end-to-end platform” in one of the fastest growing segments of the industry, with the resources, relationships and talent to drive earnings growth both organically and through other potential acquisitions.
The company would hold a general meeting on 25 September to approve a consolidation of its share capital, and grant the directors of the company authority to issue shares as part consideration for the acquisition.
“Acquiring YuMe accelerates RhythmOne's strategy to build a unified programmatic platform with unique audiences of differentiated quality at scale,” said RhythmOne CEO Ted Hastings.
“Through YuMe, RhythmOne gains access to premium video supply including emerging, high-value connected TV inventory, unique customer insights, cross-screen targeting technology and established demand relationships.
“We believe this combination will give RhythmOne the resources, relationships and talent to drive value for its shareholders, and a true return on investment.”
Also commenting on the acquisition, Paul Porrini - CEO of YuMe - said the future of brand advertising was “connected”, as in connecting buyers to premium inventory, connecting screens to deliver unified cross-screen campaigns, connecting campaigns to brand objectives and connecting “the best technologies” to each other to “deliver a sum that is greater than its parts”.
“We are proud of the business we have built at YuMe, and our success in delivering innovative technologies that have helped our clients achieve their marketing goals.
“Together, RhythmOne and YuMe have an opportunity to transform digital advertising with an adaptive platform that connects premium demand and supply with efficiency and performance at its core.”