Altice to Acquire Online Video Ad Platform Teads in Deal Worth $308M
"Convergence of telecoms content, and advertising is at the core of our business," says Altice CEO Michel Combes.
European cable and telecom giant Altice, which previously acquired Cablevision Systems and a majority stake in Suddenlink in the U.S., has agreed to buy online video advertising marketplace Teads, which has an audience of more than 1.2 billion unique visitors.
The acquisition values Teads at an enterprise value of up to 285 million euro, or $308 million. Teads' revenue grew 44 percent in 2016 to an estimated 187.7 million euro, or $203 million.
The acquisition comes as the company looks to provide clients with data-driven, audience-based advertising on multiple screens, including TV, digital, mobile and tablets. Altice USA recently agreed to acquire Audience Partners in a deal also enhancing that strategy.
Teads, founded in 2011, is the inventor of outstream video advertising. Publishers work with it to create new premium video inventory and manage their existing inventory, monetizing it through their own sales force, Teads' sales force or programmatic buying.
The senior management of Teads, including executive chairman Pierre Chappaz and CEO Bertrand Quesada, will continue to lead the business. The acquisition is subject to certain competition reviews and is expected to close in mid-2017.
Said Michel Combes, CEO of Altice: "Convergence of telecoms content, and advertising is at the core of our business. There is significant incremental value to be generated from our assets. Teads, a powerful business in itself, with major presence in Altice footprint notably in the U.S. and France, will enable us to offer a truly unique value proposition to brands and agencies on the one hand and the media industry, programmers and distributors on the other. It is that value proposition — data-driven, measurable and multi-screen — which will enable us to significantly grow our advertising business."
Altice was founded by Morocco-born businessman Patrick Drahi.