Sir Martin Sorrell, CEO of WPP, says clients want world-class solutions from independent ad technology companies.
AppNexus, the real-time online ad platform, is to acquire Xaxis’ ad-serving technology as part of a strategic deal to boost WPP’s programmatic offering, it has been announced.
The WPP-owned Xaxis will enter into a partnership with AppNexus, with WPP investing $25 million, adding to the $85 million in funding the company recently raised at a valuation of $1.2 billion.
Under the terms of the agreement, AppNexus will acquire Xaxis’ premium ad-serving technology, Open AdStream, now known as Xaxis For Publishers.
AppNexus will work to align the technologies to create a better offering to clients. The deal will also go some way to strengthen the position of Xaxis in the programmatic market.
In a statement , Xaxis said the divestiture will allow the business to focus software development on its own platform including its Turbine DMP, analytics suite, and cross-channel optimisation technology.
“Our clients want world-class solutions from independent ad technology companies,” said Sir Martin Sorrell, CEO of WPP. “We’re delighted to deepen our partnership with AppNexus, which has proven itself as a clear leader in ad tech and a company with the scale and ingenuity to continue to transform our industry.”
“Publishers want a technology partner they can trust,” added Brian O’Kelley, CEO of AppNexus. “Open AdStream has been one of the most effective and trusted ad serving platforms in the world for years. We’re going to make it #1 in programmatic.”
The transaction is subject to regulatory approval and customary closing conditions, and is expected to close by year end.
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.
