Millennial looks to strengthen its RTB offerings with Nexage acquisition
Compared to the raft of mobile analytics deals we’ve seen recently, there’s not been a whole lot of activity around RTB platforms since Twitter picked-up MoPub late last year. But it was only a matter of time before a big ad network made another move. The only question was who was going to be bought-up next (there’s not too many dedicated players left).
Millennial has already launched its own RTB joint venture with AppNexus, so it will be interesting to how Nexage will fit into the mix. Nexage has certainly been on a high recently, releasing a bunch of positive numbers regarding its private exchanges – which offer more premium inventory – showing publishers have enjoyed a 718% revenue growth. The company has been very keen to focus on the problem of getting big brands spending on programmatic (which is a more scatter gun in terms of the quality of inventory) and private exchanges are one way around this.
In a statement on the acquisition, Nexage’s CEO Ernie Cormier said:
“Millennial Media is an extremely well known name in our industry, and a real pioneer and leader in bringing brand dollars into mobile. 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.”
Millennial’s CEO Michael Barrett 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.”
Under the terms of the deal Millennial will pay around $22.5 million in cash and $85 million in stock. For more information take a look at the official press release.