Millennial Media to Buy Audience Platform Jumptap

Mobile advertising specialist Millennial Media is to acquire Jumptap, which enables brands to target, place and track advertising on mobile phones and tablets, in a deal valued at around $209m.

Jumptap uses proprietary targeting technology, industry partnerships and third-party data to optimize mobile ad campaigns, by identifying and targeting the most relevant audiences. In support of this, the firm also conducts industry research, including the 'Understanding Mobile Audience' series and MobileSTAT report.

Last year, Jumptapt completed a $27.5m financing round from a group of investors including WPP, and it had been preparing for a public offering. Instead, with Millennial Media now buying it, Jumptap shareholders will receive approximately 24.6 million Millennial shares, corresponding to approximately 22.5% pro forma ownership post transaction. Millennial says the combined company will offer 'the largest and most complete' suite of audience solutions including data, targeting, video, rich-media, cross-screen, and analytics.

Following the close of the transaction, Jumptap CEO George Bell will join the board of Millennial Media and become Vice Chairman.

Paul Palmieri, Millennial President and CEO, comments: 'Jumptap's expertise in performance, cross-screen, real-time bidding and third-party data fit well with, and provide incremental scale to Millennial Media's existing platform. We are thrilled to add Jumptap's capabilities, their solution set and strong team as part of our mobile advertising business, and look forward to partnering with the team.'

Web sites: www.millennialmedia.com and www.jumptap.com .