Adtech company Taptica will acquire RhythmOne for US$176 million in an all-stock deal, pending shareholder approval. RhythmOne provides cross-screen solutions focused on connected TV (CTV).
The combination of RhythmOne and Tremor Video DSP, which Taptica acquired in August 2017, will create one of the leading independent video advertising companies in the US, the company said. Ofer Druker, who has led Tremor Video DSP as executive chairman, will be appointed CEO of the enlarged group.
“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,” said Ofer Druker, CEO of Tremor Video DSP.
“RhythmOne will also add to our media exchange capabilities through its Private Marketplace (PMP), helping us offer enhanced reach, quality and results.”
RhythmOne offers high-impact programmatic video capabilities that are based on an advanced media offering with an emphasis on CTV, enabled by RhythmMax, their robust exchange.
According to the company, the alignment in business models with Tremor Video DSP will provide immediate scale, and the addition of RhythmOne’s unique audience data and analytics capabilities will create a full stack solution for advertisers.
“I believe this transaction best positions RhythmOne for the future,” said Eric Singer, Non-Executive Chairman of RhythmOne.
“As we look into and plan for our next fiscal year, combining RhythmOne and Taptica addresses the importance of scale in our industry. The transaction also leverages each company’s respective capabilities to provide a more comprehensive product offering, which will, we believe, offer significant revenue synergies to the benefit of our shareholders and employees.”
Founded in 2004, RhythmOne is headquartered in San Francisco with 600 employees and has additional offices in Austin, Bellevue, Chicago, New York and Waterloo (Ontario). RhythmOne currently works with more than 4,000 digital publishers and serves over 500 top brands.
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.