Telecoms Corp Buys Cross-Device Ad Tech Firm Tapad

Cross-device targeting technologist Tapad is to be acquired by Oslo-based telecoms giant Telenor Group, which will pay $US 360m for around 95% of shares.

Telenor says the buy gives it a stake in the high-potential ad technology business. Tapad, which will keep its identity within its new parent group, is based in New York but was founded, in 2010, by a Norwegian entrepreneur, Are Traasdahl (pictured). Its 'Device Graph' platform gives clients a holistic view of consumers across devices and screens, including smartphones, tablets, home computers and smart TVs - whilst maintaining data provacy. CEO Traasdahl and co-founder and CTO Dag Liodden will retain a 5% stake in Tapad and retain their current positions.

Tapad expects 2015 revenues of $US 57m, up 70 percent from 2014, but will lose $12m (EBITDA) - Telenor says it expects to turn the latter round by 2017, while revenues should increase to $90m in 2016. The acquired firm has 160 employees in thirteen offices across the US and Europe.

Telenor CEO Sigve Brekke comments: 'I believe significant value can be created from applying marketing technology to improve the digital capabilities of our core telecom business. This will improve our understanding of customer behaviour, and supports building a platform for other business areas'. The technology and skills gained will help to 'further digitize Telenor's core business, including important areas like sales, marketing and distribution'.

Traasdahl says his team are 'thrilled to join the Telenor family' and expect the move to 'accelerate our vision to become the world's leading provider of unified digital marketing solutions'.

Are Traasdahl and his investment company Spring Capital are selling almost half the shares (totalling 46.5%) - investor companies including WPP make up most of the rest. Closing is expected in the first quarter but is subject to regulatory approvals.

Three months ago, Tapad partnered with audience insights provider VisualDNA to make the latter's psychographic audience-profile data available within its media platform.

Web sites are at www.tapad.com and www.telenor.com .

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