22nd Sep 2014 07:00
LONDON (Alliance News) - Media buying giant WPP PLC said Monday that it has agreed to invest USD25 million, plus its ad server platform technology, for a significant stake in advertising technology company AppNexus Inc.
WPP's advertising technology, part of the company's Xaxis business, was originally acquired as part of WPP's acquisition of 24/7 Real Media in 2007, and WPP says it is the second largest publisher advertising server in the world.
Staff from the 'Xaxis for Publishers' business will join AppNexus. WPP said that this would allow the Xaxis business to focus development resources on its core data technology and media products, whilst "closely aligning with a strong, independent ad serving partner." Xaxis will continue to develop its own platform technologies.
AppNexus, founded in 2007, is valued at USD1.2 billion, and has net revenues of over USD100 million WPP said. AppNexus operates a platform used for the buying and selling of digital advertising for marketers, publishers and content providers, including Xaxis.
WPP said that taking a greater stake in AppNexus is part of its strategy of investing in fast-growing sectors, and further cements "its leadership position in ad tech and programmatic targeting."
The deal is subject to regulatory approval, and is expected to be completed by the end of the year.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
WPP