definitive agreement | Sabin Piso

Millennial Media will purchase Nexage for RTB technology and mobile advertising

Millennial Media has signed a definitive agreement to purchase Nexage for approximately $107.5 million in cash and stock. The final transaction is subject to certain adjustments and formal closing agreements. Privately held Nexage is from Boston and is a leading provider of Real-Time-Bidding (RTB) technology which is important in automating the buying and selling of ads via mobile.

Michael Barrett, President and CEO of Millennial Media mentioned in an exclusive interview “We are in a very exciting time right now as we help to build, educate and advance the role of RTB and programmatic solutions to advertisers, publishers, and developers.” He added “Our vision is to create a full-stack solution that enables us to open the flow of impressions, operate a leading independent exchange, and maximize the yield for our publishers. The opportunity to integrate Nexage’s programmatic technology with our deep roots and heritage in agency relationships will uniquely position us in this fast paced ecosystem. Together, our companies will be able to offer managed services for agencies and a complete set of programmatic tools for automated buyers. We are looking forward to having the Nexage team join our family as we continue to build the next generation of mobile advertising.”

The proposed acquisition of Nexage increases the focus on Millennial Media’s platform business in three key areas. These also Increases the yield for publishers via expertise and scale. It is also important to note that Nexage’s offerings will complement Millennial Media’s demand from various agencies and advertisers with a complete programmatic marketplace. To note, Nexage’s marketplace includes these key points: a leading exchange that focuses Demand Side Platforms (DSPs) plus trading desks to purchase ad impressions through a programmatic direct, private exchange and open auctions.

Another focus is a Supply Side Platform (SSP) and mediation solution that provides a venue for publishers to expose impressions to classic networks. This includes including the Facebook Audience Network, Google’s Admob, and iAd. Nexage is connected to over 225 programmatic buyers and networks. This provides one of the most complete mobile monetization solutions globally.

Finally, a focus on an ad server that publishers and developers can use to create directly-sold campaigns. This enables efficient data and audience buying.

The two companies will be in a distinct position to improve impressions through first and third party data. Millennial Media with its mobile DMP can ingest publisher and advertiser data to enable amazing strategies like re-targeting, audience extensions, and cross-device attribution.

Ernie Cormier, President and CEO of Nexage also mentioned in an interview “Millennial Media is an extremely well-known name in our industry, and a real pioneer and leader in bringing brand dollars into mobile.” He added “I believe the addition of Nexage’s platform and people will further Millennial Media’s mission in creating a leading independent mobile advertising platform and vital programmatic marketplace.”

Under the terms of the agreement that was signed by the two companies, Millennial Media will pay approximately $22.5 million in cash and approximately $85 million in stock. These are subject to certain adjustments. Accordingly, Nexage shareholders will receive approximately 37 million newly issued shares of Millennial Media based on a price of $2.21 per share of Millennial Media common stock. The closing of the acquisition is subject to customary closing conditions, including approval by Millennial Media’s shareholders of the proposed issuance of the shares in accordance with the rules of the New York Stock Exchange.

A.L. Mijares

About Millennial Media:

Millennial Media is an advertising company that provides technology for various display ads on mobile devices. Headquartered Baltimore, with offices in Boston, London, Singapore, New York City and San Francisco. The company was founded in May 2006 by Paul Palmieri and Chris Brandenburg. Millennial Media has acquired several companies and some of these are TapMetrics in 2010, Condaptive in 2011, and Jumptap in 2013. In March 2009, Millennial Media has provided regular research reports. Millennial Media has won several awards for advertising. Millennial Media stock market evolution:

http://www.marketwatch.com/investing/stock/mm

About Michael Barrett:

Michael Barrett is the CEO of Millennial Media. Mr. Barrett’s has a very impressive resume. He became an executive for Yahoo and also served as CEO of Google-acquired AdMeld and CRO of MySpace.

About Nexage:

Nexage is one of the leading premium market place in mobile advertising. The company has helped publishers & developers make money, while enabling media buyers to reach audience at scale. Nexage is headquartered in Boston, MA.

About Ernie Cormier:

Ernie Cormier is the CEO and President of Nexage and is responsible for the company’s strategic direction and business operations. Mr. Cormier has made a successful career in wireless, digital media and content, software, and the Internet. He has a well-rounded engineering education, with special focus on product design and development. This allowed him to advance to senior executive leadership roles.

Home appliance king Electrolux sets to buy GE Appliances from GE; General Electric secures increased profits by 2016

A definitive agreement has been signed between General Electric and Electrolux. The transaction is regarding GE’s plan to sell its appliance brand to Electrolux for $3.3 billion. This is a long term agreement between the two appliance giants to continue GE’s legacy and technology. GE and Electrolux board of directors has approved the transaction and will wait for customary closing conditions as well as regulatory approvals. This partnership is set to close in 2015.

Jeff Immelt, General Electric Chairman and CEO has commented in an interview that this recent transaction with Electrolux is consistent with GE’s commitment to provide the best infrastructure and technology. He mentioned: “We are creating a new type of industrial company, one with a balanced, competitively positioned portfolio of infrastructure businesses with strong advantages in technology, growth markets, driving customer outcomes, and a culture of simplification.”

In 2014, General Electric has undergone massive changes in order to improve its portfolio. One of the most recent steps to reshape the company was taken in June when GE’s offer for Alstom’s Power and Grid was accepted by the board of directors of Alstrom. GE is known as a technology leader when it comes to power and water and is also known to have a higher growth margin when it comes to these industries.

This agreement between General Electric and Electrolux is a part of the company’s 2014 portfolio which highlights longer –term redeployment of GE’s capital from non-core assets like media, plastics and insurance to oil and gas, aviation, power and healthcare which are considered high-margin businesses. By strategizing their portfolio, it is estimated that General Electric will achieve 75% of its profits from its partner industrial businesses by the year 2016.

Immelt continued to comment on the latest sell out: “GE Appliances is a great business and we are proud of the role it has played in GE’s history.” He added “Electrolux is the right global business for our customers, consumers and employees. We have greatly strengthened this franchise in the past few years. GE Appliances’ people, valuable home appliances brand, products, distribution, and service capabilities make it a perfect fit with Electrolux and its goal of accelerating growth in the US. Like GE Appliances, Electrolux has nearly 100-year history in home appliances and they share the same principles of quality, innovation and customer value as GE. They are committed to supporting the growth of GE Appliances and value the GE Appliances team and its capabilities.”

On the other hand, Keith McLoughlin, President and CEO of Electrolux also complemented General Electric’s value as a consumer brand. “GE Appliances is a well-run operation with strong capabilities in key areas such as R&D, engineering, supply chain and consumer service.” He further added that Electrolux is looking forward to joining forces with General Electric and its team of talented and competent workers and employees.

The sale of GE Appliance to Electrolux will generate an approximate after tax gain of $0.05 to $0.07 per share at closing. It is estimated that the transaction values of GE Appliance is at 8.0 times the last 12 months of earnings and this is before interest, taxes, depreciation, and amortization. General Electric’s financial adviser is Goldman Sachs and Sidney Austin LLP is the company’s legal advisor.

Details of this sale will be provided by representatives of General Electric and AB Electrolux after formalities have been settled and the partnership closed next year.

A.L. Mijares

About General Electric

General Electric or GE is a multinational conglomerate corporation in the US with headquarters in Fairfield, Connecticut and incorporated in New York. GE is behind segments such as energy, technology infrastructure, capital finance and consumer and industrial. The company ranked 26^th in the Fortune 500 list according to revenue and the 14^th as the most profitable in 2011.

http://www.marketwatch.com/investing/stock/ge.

About Jeff Immelt

Jeffery Robert “Jeff” Immelt is an American business executive and current chairman of the board and chief executive officer of General Electric Company. He has held leadership seats in GE since 1982 and these include GE Plastics, Healthcare and Appliances.

About AB Electrolux

AB Electrolux is a leader in kitchen appliances, indoor and outdoor cleaning equipment and professional appliances for businesses. AB Electrolux is a Swedish multinational company with headquarters in Stockholm, Sweden. It is the second-largest manufacturer of appliances when it comes to units sold. Electrolux stock market evolution:

http://www.marketwatch.com/investing/stock/eluxy.

About Keith McLoughlin

Keith McLoughlin is the President and CEO of AB Electrolux since 2011. Keith is responsible for research and development, manufacturing and purchasing for Electrolux Major Appliances. Before he joined Electrolux, he held management positions in DuPont Corporation, Tyvek, Stainmaster and Corian.

Millennial Media Signs Agreement to Acquire Nexage for $107.5 Million

General Electric Sells GE Appliances Brand to Electrolux for $3.3 Billion