Mobile display ad specialist Millennial Media is to acquire Nexage, a provider of real-time-bidding technology, for approximately $107.5 million in cash and stock, it has been announced.
Based in Boston, privately held Nexage automates the buying and selling of mobile advertising and will help meet the agency and advertiser demand placed on Millennial Media to provide a full programmatic marketplace.
“We are in a very exciting time right now as we help to build, educate and advance the role of RTB and programmatic solutions to advertisers, publishers, and developers,” said Michael Barrett, president and CEO of Millennial Media.
“Our vision is to create a full-stack solution that enables us to open the flow of impressions, operate a leading independent exchange, and maximise the yield for our publishers. The opportunity to integrate Nexage’s programmatic technology with our deep roots and heritage in agency relationships will uniquely position us in this fast paced ecosystem.
“Together, our companies will be able to offer managed services for agencies and a complete set of programmatic tools for automated buyers. We are looking forward to having the Nexage team join our family as we continue to build the next generation of mobile advertising.”
It will be hoped that the proposed acquisition will increase yield for publishers, allow advertisers to buy impressions programmatically and enable audience buying.
Under the terms of the agreement, Millennial Media will pay approximately $22.5 million in cash and approximately $85 million in stock, subject to certain adjustments.
Don’t miss out: MediaTel is hosting the annual Automated Trading Debate on 6 October. With panellists from Xaxis, Bauer Media, RadiumOne and Mediaocean, amongst others, the event promises a full examination of all the thorny issues arising around programmatic trading. Full details here.
