21st Jun 2022 11:23
(Alliance News) - Tremor International Ltd on Tuesday confirmed it is in talks to take over an American advertising company, and announced an investment in the connected television market.
In response to a Sky News report, the London-listed digital advertising firm confirmed it is in talks to acquire Amobee, a digital marketing technology company.
The talks come "alongside a number of ongoing strategic discussions with other third parties, which is considered normal course of business by management and in line with its stated [mergers and acquisitions] policy", Tremor said.
Shares in Tremor were up 5.2% at 374.80 pence each in London late on Tuesday morning.
California-based Amobee is a wholly-owned subsidiary of Singapore Telecommunications Ltd, one of the four large telecommunications companies in Singapore.
Sky News on Monday had said banking sources predict the purchase of Amobee would add more than GBP60 million in earnings for Tremor.
https://news.sky.com/story/london-listed-adtech-firm-tremor-in-talks-to-buy-165m-rival-from-singtel-12637382
This would double the USD72.3 million, around GBP58.8 million, in pretax profit that Tremor booked in 2021.
Separately, Tremor announced a USD25 million investment in VIDAA, which is a smart TV operating system and streaming platform. VIDAA is a subsidiary of Hisense Co Ltd.
"Our strategic partnership and mutual vision with VIDAA is rare in the ad tech marketplace, and we believe it provides Tremor with cutting-edge capabilities in the Connected TV ecosystem," said Chief Executive Officer Ofer Druker.
Tremor expects the investment to close in the third quarter of the year and will be funded from existing cash resources.
By Elizabeth Winter; [email protected]
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