Taptica Buys Tremor Video DSP Business

Video ad effectiveness specialist Tremor Video has agreed to sell its core video DSP business to Israel-based digital ad platform Taptica, for an effective price of $50m.

Tremor has installed fresh faces at the top this year, with former Nielsen exec Mark Zagorski appointed as Chief Executive Officer in June, following the promotion of Katie Evans to COO in March. It will now focus on its seller-side technology.

The DSP platform makes use of data partnerships to help ad buyers - mostly in the US - target consumers cross-screen; and also provides metrics on viewer numbers, brand safety and audience targeting. Estimated revenue was $115m in 2016, and EBITDA loss was $1.3m.

Taptica says the buy will enhance its digital advertising solutions and help expand its geographical presence - diversifying its revenue streams whilst retaining its focus on DSP (Demand Side [Ad] Platforms). Tremor's video DSP will be integrated with Taptica's systems to build 'a unique offering around next-generation mobile usage, combining mobile, video and social programmatic ad buying platforms for brands and their agencies to ever more accurately target their consumers and users'.

Taptica bought a majority share in Japan-based Adinnovation three weeks ago, for up to $5.7m, and says the latest buy will give it a broader footprint in the US and Asia-Pacific. It aims to fund the acquisition entirely from existing cash resources and a line of credit from HSBC bank.

Taptica CEO Hagai Tal (pictured) says Tremor's DSP has 'an excellent brand name' and believes his firm has 'given itself a huge competitive advantage as [it is] now able to offer brands and their agencies the ability to ever more accurately target their consumers and users'.

Taptica is headquartered in Israel with offices in San Francisco, New York, Boston, Beijing, Seoul, Tokyo and London; and is traded on the London Stock Exchange. Web sites: www.taptica.com and www.tremorvideo.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.