NEW YORK—The ongoing consolidation of the ad tech market continues with Tremor International Ltd. announcing that it has entered into a definitive agreement to acquire Amobee for $239 million.
In announcing the deal, which is expected to close in Q3, 2022, Tremor said that it expects to finance the deal with a combination of existing cash resources and a new $100 million debt facility it expects to obtain prior to closing the Transaction.
As of June 30, 2022, Tremor had a net cash balance of approximately $360 million. Additionally, the Company also expects to obtain an approximately $50 million revolving credit facility which, along with existing surplus cash resources, is available for future strategic investments and initiatives.
“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 CTV and video,” said Ofer Druker, Tremor International’s CEO. “Amobee would add several capabilities including campaign execution across linear and digital channels within a single platform. Additionally, the Transaction would fulfill our strategy to add significant global scale and self-service growth to our demand side platform, increase our US and international customer reach and data footprint, and drive more advertiser spend to our SSP, Unruly.”
Amobee has over 500 customers globally and operates across three core business segments: Omnichannel Demand Side Platform (“DSP”), Amobee Advanced TV Platform, and Email Marketing Platform.
As part of the deal, Tremor will acquire Amobee’s Omnichannel Demand Side Platform and Advanced TV Platform but will not acquire its Email Marketing Platform and related current and historical liabilities, which is expected to remain with the Seller, Amobee Group Pte. Ltd.
The companies also reported that for the twelve months ended June 30, 2022, Amobee generated preliminary unaudited Contribution ex-TAC of approximately $150 million, excluding the results from Amobee’s Email Marketing Platform.
In addition to that financial contribution to Tremor's bottom line, the deal would significantly enhance technology offering and business footprint across Tremor’s operations, including self-service DSP, performance capabilities, CTV, and data, while also adding new insight tools, and linear TV capabilities.
