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.
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:
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.
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.