San Francisco ad tech firm RhythmOne has acquired online video advertising and targeting firm YuMe for a total consideration of approximately $185m. The transaction is expected to close by Q1 2018.
YuMe's technology reaches data validated audiences on any connected TV or digital screen, with programmatic brand ad solutions. These incorporate data-driven audience insights to help brand advertisers reach and influence their most promising audiences. YuMe's first-party data management and targeting platform will be merged with RhythmOne's analytics, data management platform and brand safety technology, and the combined data set will be augmented with machine-learning algorithms to provide insight for publishers looking to derive additional value from their audiences.
Under the terms of the agreement, YuMe shareholders will receive $1.70 per share in cash and 7.325 shares in RhythmOne stock, equivalent to a total consideration of $185m. RhythmOne, which also owns social media ad targeting firm RadiumOne, says the deal will provide a fully-integrated, end-to-end online ad solution. Its CEO Ted Hastings (pictured) will continue in his role as President and CEO of the combined company; and YuMe will appoint two directors to the newly constituted Board of Directors, including Eric Singer, who will become the Chairman of the Board.
Hastings comments: 'Through YuMe, RhythmOne gains access to premium video supply including merging, 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 true a return on investment'.
Web sites:www.rhythmone.com and www.yume.com .
All articles 2006-19 written and edited by Mel Crowther and/or Nick Thomas.