Tremor International, an Israeli advertising technology firm, has acquired US digital media and advertising company Amobee from its parent company Singtel for $239 million. Singtel bought Amobee for $321 million in 2012. So, this amounts to an $82 million loss for Singtel, but in actuality much more than that considering the net present value of the 2012 purchase price for Amobee.
It should come as little surprise that a business has lost a considerable part of its value these days. A number of companies are shrinking due to the global financial crisis. For example, just a week ago Israeli events platform Bizzabo revealed that its current fundraise is expected to leave the company with a lowered valuation.
And Tremor international itself has seen its market share plummet recently. The company first went public in June 2021 at a $1.5 billion valuation. Tremor can afford the acquisition, however, as it has $360 million in cash on hand. But it will take on $100 million in new debt to help finance the deal.
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Founded in 2005 founded by Zohar Levkovitz, Gil Shulman, and Saul Rurka, Amobee says that it helps brands, agencies, and media companies unify audiences to optimize results across all TV, connected TV, and digital media, including social, to drive customers’ growth.
Tremor International is a collection of brands built to unite creativity, data and technology across the open internet.
Tremor Video states that it helps advertisers deliver impactful brand stories across all screens through the power of innovative video technology combined with advanced audience data and captivating creative content. Tremor Video is one of the largest and most innovative video advertising companies in North America and globally, with offerings in CTV, in-stream, out-stream and in-app.
“The acquisition of Amobee is expected to build upon Tremor International’s growth strategy and proven track record of successfully integrating companies that enhance and expand the capabilities and scale of its data-driven end-to-end technology and business platform, focused on CTV and video,” said Ofer Druker, Tremor International’s CEO. “Amobee would add several capabilities including campaign execution across linear and digital channels within a single platform. Additionally, the transaction would fulfill our strategy to add significant global scale and self-service growth to our demand side platform, increase our U.S. and international customer reach and data footprint, and drive more advertiser spend to our SSP, Unruly.”
Singtel Chief Executive Yuen Kuan Moon said of the sale, “We are actively reshaping our portfolio to ensure optimal allocation of resources towards new growth drivers, as well as improve shareholder value.”