Programmatic advertising pioneer MediaMath has raised $225 million from investment firm Searchlight Capital Partners.

The financing, which will be delivered in two tranches, will provide capital to accelerate the expansion of MediaMath’s Demand Side Platform and Data Management Platform through acquisitions and organic growth.

Founded in 2007, MediaMath has raised more than $500 million to date and The Wall Street Journal reports the latest funding round values the company above $1 billion.

The investment follows other deals in the adtech space including AT&T’s acquisition of AppNexus for a reported $1.6 billion, and private equity firm Vista Equity Partners taking a majority stake in Integral Ad Science.

Searchlight’s other investments across the technology, media and communications landscape include Rackspace, PatientPoint, Ocean Outdoor, Octave Group, General Communication, Hemisphere Media, Liberty Cablevision Puerto Rico and Global Eagle.

“MediaMath is uniquely positioned to architect and deliver the idealised version of the marketing stack of the future for both brands and agencies,” a spokesperson for Searchlight Capital Partners said.

The funding will be used in the development of its products, including scaling its activity in high growth channels such as connected television and digital out-of-home as well as investing in AI through a partnership with IBM.

The adtech company announced a partnership with IBM Watson in 2017 to develop “cognitive bidding.” 

“Together, MediaMath and IBM are infusing AI into real-time marketing decisions, arming marketers with the insights needed to more effectively delight their customers,” says Inhi Cho Suh, general manager, Watson Customer Engagement.

“MediaMath’s focus on machine learning in the paid digital advertising sphere complements IBM’s leading-edge AI and cloud technology to enable brands to make the connection with consumers personal and meaningful.”

The company was also recently selected by Dentsu Aegis Network to power its digital and programmatic business under Amnet’s Amnet Audience Center (AAC). Following a year-long deployment, a still-growing advertiser base of more than 600 advertisers in 30 global markets use AAC’s audience segmentation, analytics, and insights. 

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