Video advertising company, SpotX, announced that RTL Group is acquiring the remaining shares in the company for a total ownership of 100%. This is in line with RTL Group’s plans to bolster its advertising technology strategy.
The media group made its first investment in SpotX back in 2014. Since then, the video platform almost doubled its net revenues and quadrupled EBITDA.
The purchase of the final shares is based on initial negotiations and an enterprise value of $404 million on a 100% basis plus net cash.
SpotX Co-Founders Mike Shehan and Steve Swoboda will continue on as executives of the firm.
SpotX provides monetisation options for over-the-top content (OTT). According to research from Digital TV Research, OTT television and video revenues in the US and Canada are poised to reach $24.39 billion by 2021, up from $17.09 billion in 2016.
Mike Shehan, CEO of SpotX, adds:
“SpotX is emerging as the premier expert in digital monetisation of OTT content delivery, and uniquely positioned to assist broadcasters and other modern TV players with maximising their profitability in the new delivery ecosystem. RTL Group’s investment will help extend our footprint in TV as we bring together the TV and digital video worlds.”
The investment also means that SpotX will be working more closely with sister RTL company Smartclip – the multiscreen and brand ad platform. Together, the companies will focus on an aggressive expansion of their services to roll out improved ad solutions for companies and consumers viewing content on every screen.
Clients of the SpotX platform currently include broadcasters and publishers such as Thomson Reuters, Meredith Local Media Group, Vevo, Gutefrage, TVPlayer, STV and Conde Nast.
“We are excited to take full ownership of SpotX, a leading global platform for ad serving and programmatic ad sales. Back in 2014, the majority stake in SpotX was our first big step into advertising technology; gaining full ownership now is another major step in transforming RTL Group into a ‘total video’ powerhouse. Together with the very experienced management teams of SpotX and of our European asset Smartclip, we are working on an ambitious growth plan for our ad tech businesses, including further acquisitions, partnerships and deeper synergies across RTL Group. Our joint vision is to build the leading global video monetisation offering for broadcasters and premium inventory owners to maximise the value of their audiences consuming total video content across multiple devices.”