Amobee wins Videology asset auction
July 18, 2018
Digital marketing technology company Amobee has emerged as the winner in the court-supervised auction to acquire certain assets from advanced TV and video advertising software provider Videology for a purchase price of approximately $101 million (€86.3m). The purchase price is subject to adjustments for accounts receivable at closing, estimated to be approximately $20.9 million.
The acquisition, following Videology’s voluntary Chapter 11 restructuring proceedings, includes Videology’s technology platform, intellectual property and certain other assets of estimated net book value of $5.3 million.
In May 2018, concurrent with the Chapter 11 filing, Videology announced that it had entered into a conditional asset purchase agreement with Amobee. Pursuant to the Chapter 11 sale process, all interested parties who met the requirements of court-ordered bidding procedures were able to submit competing offers to acquire Videology’s assets.
Over the past decade, Videology has emerged as a leading provider of software that empowers advertisers and publishers to use data to optimise campaigns and spend across digital platforms and television. The addition of Videology’s capabilities will be a further boost to Singtel subsidiary Amobee’s omni-channel platform and help marketers meet growing consumer demand for premium video and connected TV content.
“Our key focus has been to build up Amobee’s technological edge as we scale Amobee to become one of the world’s top leading independent digital marketing players,” advised Samba Natarajan, CEO of Singtel’s Group Digital Life. “The strategic acquisition of Videology’s assets puts Amobee in an even stronger position to capture the global digital marketing opportunity with the convergence of TV and digital.”
“Television is the largest category of advertising spend and the industry is in the early-stages of the TV and video advertising transformation,” explained Amobee’s CEO Kim Perell. “With the acquisition of Videology’s innovative technology assets, Amobee will strengthen our omni-channel capabilities and continue to bring marketers next generation solutions to reach and engage consumers on a global scale.”
“Becoming part of Amobee represents the best path forward for Videology. Amobee and Singtel share our goal of leading the transformation of TV,” said Scott Ferber, Founder and CEO of Videology. “Amobee has established itself as a global leader in digital advertising and Videology’s TV and video capabilities are highly complementary to the Amobee platform. We anticipate the completion of the acquisition to be seamless for Videology’s valued clients and partners, providing the financial stability and strategic position to drive future growth.”
The acquisition is subject to court and regulatory approvals and fulfilment of certain closing conditions.