Taptica Buys RhythmOne

Israel-based digital ad platform Taptica has acquired RhythmOne in a $US 176m all-stock deal, creating a powerful combination with another recent acquisition, Tremor Video DSP. Tremor Executive Chairman Ofer Druker will become CEO of the enlarged group.

Taptica has operations in more than 20 countries, and is traded on the London Stock Exchange. The deal, which is subject to shareholder approval and expected to close in early April, will give its shareholders 50.1% of the enlarged group and RhythmOne shareholders 49.9%.

RhythmOne, founded in 2004 and headquartered in San Francisco with 600 employees, provides cross-screen solutions focused on connected TV (CTV), and including audience data and analytics capabilities. It also acquired online video advertising and targeting firm YuMe in 2017. Once combined with Tremor Video DSP, it will create a strong independent player in the video advertising market.

Druker (pictured) co-founded data-driven online ad company Matomy Media Group in 2007, and previously held senior roles at Soho Digital International, and Cydoor Desktop Media. He says of the buy: 'We're excited to announce the acquisition of RhythmOne, which will allow us to combine its strong pedigree in CTV media with Tremor Video DSP's years of experience in TV retargeting to create a robust and powerful video company that will be able to offer a variety of advanced capabilities to our clients. RhythmOne will also add to our media exchange capabilities through its Private Marketplace (PMP), helping us offer enhanced reach, quality and results',

The deal is intended to come into effect with the closing of the deal in early April, after which RhythmOne will cease to be publicly traded on the London Stock Exchange.

Taptica is involved in a civil court case announced in December, against former CEO and Executive Director Hagai Tal, but stressed today that the case would have 'no impact' on the company and that the Board 'has no reason to believe there have been any criminal offences conducted by Mr Hagai Tal', who is said to be supportive of the proposed merger - he holds 13.85 per cent of Taptica shares.

The companies can be found online at www.tapticainternational.com and www.rhythmone.com .

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