Innovid To Acquire TVSquared, Transaction Valued At $160M
Innovid To Acquire TVSquared, Transaction Valued At $160M
Innovid, an independent connected TV (CTV) advertising delivery and measurement platform, has entered into an agreement to acquire TVSquared, an independent global measurement and attribution platform for converged TV, in a cash and stock transaction valued at approximately $160 million.
The combined companies will enable TV advertisers to measure campaign performance based on TV measurement. It will provide the ability to connect TV ads — both streaming and linear — to app downloads and ecommerce conversions to determine when and if the CTV ads drive purchases, for example.
Zvika Netter, CEO and co-founder of Innovid, believes the deal immediately accelerates the company’s ability to operate globally, as brands, agencies, publishers, and broadcasters attempt to maximize reach and identify the right audiences to drive business growth with TV.
In November 2021, Innovid expanded into China ahead of its initial public offering in December, and appointed David Chen to executive director to manage its business in the region. Chen at one point served as country manager for Google Platforms, and managing director of Publicis.
As the market demands greater accountability, the idea is for the two companies to recreate the future of cross-platform TV measurement. The deal, creates a new standard for cross-platform measurement, the companies say.
TVSquared’s total preliminary revenue for the full-year 2021 is expected to contribute between $20 million and $22 million to the combined companies’ revenue for last year.
Calum Smeaton, CEO and founder of TVSquared, believes Innovid and TVSquared share a complementary vision to transform TV measurement through a complete view of audiences across all devices and platforms worldwide.
At the close of the acquisition, Smeaton will step down, but remain with the combined company to focus on strategy. TVSquared’s president, Kinsella, who has been with the company nearly since its inception will join the Innovid executive team, reporting into Netter and lead the measurement business.
The combined company will represent advertisers and suppliers to process billions of impressions daily.
The joint offering includes ad serving, creative personalization and optimization, outcomes and audience measurement, including reach, frequency and unique unduplicated reach, for the total TV and digital universe.
The deal gives Innovid access to new verticals, categories, geographies, and brands, as well as ecommerce and direct-to-consumer companies, for example, like GoDaddy, GrubHub, Untuckit, Hello Fresh, Peloton, and others. TVSquared also operates in more than 75 countries across six continents, inclusive of more than 100 million households globally and more than 75 CTV platforms.
The TVSquared acquisition is expected to close by the end of Innovid’s fiscal second quarter, subject to the satisfaction of customary closing conditions.
All financial information for TVSquared is prepared under UK GAAP which may not be comparable to financial results prepared under US GAAP. TVSquared was advised by LUMA Partners.
When Innovid releases Q4 and full-year 2021 financial earnings on February 24, the company is expected to report revenue of between $25 million and $26 million.
Total “core” clients grew from 95 to 109, with a retention rate between 94% to 97%. Adjusted EDITDA for the full year is projected between $4.5 million and $5.5 million, and for Q4 2021 between $1 million to $2 million.
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