Altice acquires
Teads, the No. 1 online video advertising marketplace in the
world
March 21,
2017 - Altice N.V. (Euronext: ATC, ATCB) announces today that
it has entered into an agreement to acquire Teads, the No. 1 online
video advertising marketplace in the world with an audience of more
than 1.2 billion unique visitors including 720 million via
mobile.
Teads
Overview
Teads, founded in 2011, is the
inventor of outstream video advertising and No. 1 video advertising
marketplace in the world[1]. Publishers
work with Teads to create brand new video inventory and manage
their existing inventory, monetizing it through their own sales
force, Teads sales force, or programmatic buying.
Teads' native video advertising
solutions encompass a series of formats inserted deep into media
content, like the inRead playing inside articles. It is changing
the game within the video advertising market by creating
unprecedented levels of premium inventory, which did not exist
before.
Brands and agencies can access
this top-tier, premium inventory, available on the web and on
mobile, through programmatic or managed services. Through its
managed services capabilities, the Teads team execute on their
clients behalf using its platform.
Teads revenue grew by 44% in 2016
to an estimated €187.7 million.
Acquisition
Rationale
The acquisition combines the
highly complementary strategic assets of Teads and Altice.
-
Teads Relationships with 94 of the top 100
advertisers globally
-
Partnership with 500+ premium publishers
globally and 8,000 vertically specialized publishers
-
Powerful digital publisher platform with leading
global reach
-
R&D innovation center (Montpellier, France
and New York, U.S.) with more than 100 engineers and
programmers
-
Highly entrepreneurial management team and
powerful digital sales engine
-
Strong standalone financial profile
Altice
-
Unique first-party data sets with c.50 million
unique fixed and mobile customers globally (over 30 million of
which are in the U.S. and France)
-
Market leading data analytics capabilities
enhanced by recent Audience Partners acquisition
-
Global and multi-local advertising sales
organization
-
Large international advertising business with
revenue in excess of € 700 million per year
This acquisition is another
critical component for Altice's global advertising strategy. Altice
will provide clients with data-driven, audience-based advertising
solutions on multiscreen platforms including TV, digital, mobile
and tablets. It will also provide an open and intelligent
advertising platform to the media industry, programmers and
multichannel video programming distributors.
Together with sophisticated return
on investment analysis capabilities, leveraging multiscreen
subscriber data information, this puts Altice in a unique position
to grow its global advertising platform and better monetize its
core telecommunications access and content business.
Importantly, the combination is
expected to provide immediate commercial and financial benefits to
Altice's advertising business, in particular as it relates making
unique first-party data available to Teads in the US and
France.
Transaction
Details
The acquisition values Teads at an
enterprise value of up to €285 million on a cash and debt free
basis. Teads announced record results for 2016, reporting 44%
organic revenue growth year over year. The company was EBITDA
positive for the fourth year in a row. Since Teads spends only
a nominal amount on capital expenditures, the acquisition
is immediately accretive to Altice's operating free cash
flow before taking into account the expected synergies and
strategic benefits of the transaction.
The acquisition purchase price is
subject to Teads achieving certain revenue targets in 2017. 75% of
the acquisition purchase price will be due at closing. The
remaining 25% earn-out is subject to Teads' 2017 revenue
performance and will become payable in early 2018.
The senior management of Teads,
including Executive Chairman Pierre Chappaz and Chief Executive
Officer Bertrand Quesada, will continue to lead the business going
forward and have agreed to reinvest a significant portion of their
proceeds. Pierre Chappaz will join Altice's Management Board
responsible for all of its advertising activities.
The acquisition is subject to
certain competition reviews and is expected to close in
mid-2017.
-------
Michel Combes, CEO of Altice,
said: "Convergence of telecoms, content, and
advertising is at the core of our business. There is significant
incremental value to be generated from our assets. Teads, a
powerful business in itself, with major presence in Altice
footprint notably in the U.S. and France, will enable us to offer a
truly unique value proposition to brands and agencies on the one
hand and the media industry, programmers and distributors on the
other. It is that value proposition - data-driven, measurable and
multiscreen - which will enable us to significantly grow our
advertising business. We are very excited to partner with Pierre,
Bertrand and their talented team."
Pierre Chappaz, Founder and
Executive Chairman of Teads, said: "We are excited
to start this new phase of Teads and become
part of the internationally renowned Altice team. Since our
inception we have strived to offer our clients with superior
advertising solutions based on measurable performance and
technological innovation. As part of Altice, we will be able
to offer even more tailored, data-driven solutions and take our
value proposition from the digital world to a multiscreen platform,
which includes TV, digital, mobile and tablets. It is this
differentiated offering which will allow Altice and Teads
to uniquely prosper in the global advertising
market."
Press conference with Michel Combes and Pierre
Chappaz
2:30 pm CET
14 rue St Fiacre, 75002
Paris
Contacts
Altice
Chief Investor Relations Officer,
Altice
Nick Brown: +41 79 720 15 03 / nick.brown@altice.net
Chief
Communications Officer, Altice
Arthur Dreyfuss: +41 79 946 49 31 / arthur.dreyfuss@altice.net
Contact
Teads
Nicole Matthews : nicole.matthews@teads.tv
About Altice
Founded by telecom entrepreneur, Patrick Drahi, Altice is a
multinational cable, fiber, telecommunications, contents, media and
advertising company with presence in four regions - Western Europe
(comprising France, Portugal and Switzerland), the United States,
Israel, and the Overseas Territories (currently comprising the
French Caribbean, the Indian Ocean regions and the Dominican
Republic). Altice provides very high speed based services (high
quality pay television, fast broadband Internet and fixed line
telephony) and, in certain countries, mobile telephony services to
residential and corporate customers. Altice is also active in the
media space with a portfolio of channels (News, Sports, Lifestyle
etc.) as well as providing Premium content on nonlinear platforms;
it also produces its own original content (Series, Movies
etc.).
Altice (ATC & ATCB) is listed on NYSE Amsterdam. For more
information, visit www.altice.net
Altice Teads
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Altice NV via Globenewswire
Atotech (NYSE:ATC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Atotech (NYSE:ATC)
Historical Stock Chart
From Apr 2023 to Apr 2024