26th Jul 2022 11:15
(Alliance News) - Tremor International Ltd on Tuesday said it has agreed to buy US advertising platform Amobee for USD239 million, in order to enhance its global presence.
Tremor is a London-listed digital advertising firm, focused on video, data and connected TV. Meanwhile, Amobee is an advertising platform, which operates across three core business divisions: Omnichannel Demand Side platform, Amobee Advanced TV platform, and Email Marketing platform.
Under the agreement, Tremor will acquire Amobee's Omnichannel Demand Side and Advanced TV platforms but will not acquire its Email Marketing platform, which is expected to remain with the seller Amobee Group Pte Ltd.
Tremor said that the acquisition, which is expected to drive financial growth within the first 12 months of completion, will expand its US and international presence. Amobee currently serves over 500 customers globally, the company noted.
Further, Tremor's Chief Executive Officer Ofer Druker said: "Amobee would add several capabilities including campaign execution across linear and digital channels within a single platform."
In the 12 months ended June 20, Amobee reported revenue excluding traffic acquisition costs of USD150 million and a loss before interest, tax, depreciation and amortisation of USD22 million, each excluding results from its Email Marketing platform.
Tremor added that it plans to buy Amobee through a combination of existing cash resources and a new USD100 million debt facility, which it expects to obtain before the USD239 million transaction is closed. At June 30, the company had a cash balance of around USD360 million.
Additionally, Tremor announced plans to obtain a USD50 million revolving credit facility which, along with its existing surplus cash resources, will be "available for future strategic investments and initiatives".
The acquisition is expected to be complete in the third quarter of 2022, the company added.
Shares in Tremor were down 0.8% to 415.20 pence each in London on Tuesday morning.
By Sophie Rose; [email protected]
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