Peer39 Sold to Digital Ad Specialist DG for $15.5m

In the US, ad targeting group DG has acquired semantic ad technology specialist Peer39 for approximately $15.5m in cash and stock, a move it says will expand its online data offering and its real-time bidding strength.

Peer39's patented algorithms use natural language processing and machine learning to analyze page meaning and sentiment, and match ads to consumers. In January, the company secured a further $2.5m in venture capital funding, adding to the $30m raised since its launch in 2006.

On acquisition, Peer39 will be integrated into DG's tailored online ad solutions division MediaMind. DG CEO Neil Nguyen says the Peer39 solution complements MediaMind's existing data-driven solutions, while strengthening the group's offering for the RTB (real time bidding) market.

DG will fund the deal with $10m in cash, an issue of approximately 357,000 shares, and a $2.3m earn out payment, and the transaction is expected to close within a few days.

As part of the deal, Peer39's employees will join MediaMind, and the firm's CEO Andy Ellenthal (pictured) - a veteran of quadrantONE, PointRoll and DoubleClick - will become DG's EVP of Sales and Ad Operations for both the TV and Online divisions.

Nguyen says Ellenthal's deep management experience in ad technology companies adds a wealth of experience to the DG team, and adds: 'We look for Andy to immediately add to our efforts to drive sales and streamline operations, and help execute our strategy of a multi-screen campaign management platform.'

Web sites: www.dgit.com , www.mediamind.com and www.peer39.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.