Mia Simonsen talks to a visitor on the Rubicon Project sales space throughout the Interactive Advertising Bureau (IAB) MIXX 2010 convention and expo throughout Advertising Week in New York, Sept. 27, 2010.
Andrew Harrer | Bloomberg | Getty Images
Public advert tech corporations Telaria and Rubicon Project have agreed to merge as they attempt to make a stronger play within the progress of linked tv and to deliver a substitute for walled gardens like Google and Facebook.
Rubicon Project affords know-how to automate shopping for and promoting advertisements on-line, whereas Telaria is a software program platform for managing video promoting. Rubicon Project inventory was up practically 5% at $7.56 per share in premarket buying and selling Thursday. Its market capitalization is $383 million. Telaria’s inventory closed Wednesday’s session at $7.52, down 3.2%, giving it a market cap of $350 million.
The corporations stated Thursday the merger makes it a significant impartial sell-side advert platform that can assist it seize progress in linked TV. An announcement from each corporations stated utilizing Telaria’s market place and tech experience, the merger will deliver the engineering and gross sales sources, broader geographic footprint and monetary belongings to “seize the CTV opportunity.”
As an impartial participant, the businesses stated they create a “global, independent alternative to closed players in the ecosystem.” As Facebook and Google bear antitrust scrutiny, smaller gamers are attempting to point out the worth and information they will present outdoors the so-called walled gardens.
“Our businesses are highly complementary, and when combined, are a powerful, strategic alternative to the walled gardens, which have been frustrating both buyers and sellers due to their lack of transparency, innovation bottlenecks, and conflicted business models,” Telaria CEO Mark Zagorski stated in a press release.
The stock-for-stock merger has an change ratio of 1.082 shares in Rubicon Project widespread inventory for every share of Telaria widespread inventory. Telaria stockholders are anticipated to personal about 47.1% of the mixed firm, whereas Rubicon Project stockholders are anticipated to personal about 52.9% of the absolutely diluted shares of the mixed firm.
Current Rubicon Project President and CEO Michael Barrett will function CEO of the mixed corporations. Zagorski shall be president and chief working officer of the mixed corporations. Rubicon Project Chief Financial Officer David Day will retain the function throughout the mixed firm.
The corporations stated over the 12 months that ended Sept. 30, Telaria and Rubicon Project’s mixture income was $217 million, a 32% year-over-year improve.
The transaction is predicted to shut by July. The corporations stated that they had not but determined what the mixed identify could be.