Taptica buys RhythmOne
February 4, 2019
Taptica, a global player in advertising technologies, announced the acquisition of RhythmOne for $176 million (€153,9m) 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 U.S. 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. RhythmOne will also add to our media exchange capabilities through its Private Marketplace (PMP), helping us offer enhanced reach, quality and results,” said Ofer Druker, CEO of Tremor Video DSP.
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. 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.
Additionally, RhythmOne’s acquisition of YuMe, which created one of the largest independent digital video advertising marketplaces, brings relationships with large scale tier one advertisers, access to premium inventory and provides extended reach into CTV. YuMe and Tremor Video DSP will work together with strong cross-selling opportunities – further diversifying existing revenue streams.
“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.”
Certain RhythmOne assets could also be complementary to Taptica’s performance business. RhythmOne has strong relationships and agreements in place to access a large supply of media. The combined group will be able to offer a media platform with the ability to reach a large volume of users and optimise performance based on a technological advantage.
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.