AcuityAds announced its intent to acquire analytics-led video advertising leader, Visible Measures Corporation and announced a CDN $7.5 million bought-deal private placement co-led by Paradigm Capital and Haywood Securities.
AcuityAds, one of the fastest-growing technology companies in the America, has announced that it has signed a definitive agreement to acquire Boston-based programmatic platform provider – Visible Measures Corporation. The acquisition is subjected to certain pre-closing conditions, on the fulfillment of which will make the analytics-led video advertising leader a part of AcuityAds.
“We are pleased to announce the second acquisition for AcuityAds in the last 6 months, this time, in the fast-growing video advertising segment,” stated Tal Hayek, CEO of AcuityAds.
The acquisition of Visible Measures is an all-cash transaction valued at USD $10 million. The cash at closing may be adjusted to meet certain working capital requirements and standard hold-backs for representations and warranties provided on behalf of the sellers. For the year ending December 31, 2016, unaudited Pro-forma trailing twelve months (TTM) revenue for the combined organization exceeded CDN $75 million.
“Since our founding in 2005, our vision has always been to build the leading measurement and analytics platform to enable marketers to maximize the effectiveness of video advertising,” stated Brian Shin, CEO of Visible Measures.
Who’s Financing AcuityAds to Acquire Visible Measures?
In order to finance a portion of the acquisition of Visible Measures, AcuityAds has entered into an agreement with a syndicate of underwriters co-led by Paradigm Capital Inc. (“Paradigm”) and Haywood Securities Inc., (“Haywood”) and including Gravitas Securities Inc. and Echelon Wealth Partners (the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a bought-deal private placement basis, 2,206,000 common shares (“Shares”) of AcuityAds, at a price of $3.40 per Share (the “Offering Price”) for aggregate gross proceeds of approximately CDN $7.5 million (the “Offering”).
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In addition, AcuityAds has also granted the Underwriters an over-allotment option (the “Option”) to purchase up to an additional 330,900 Shares (representing 15% of the base Offering) at the Offering Price exercisable in whole or in part at any time 48 hours prior to the closing of the Offering. If the Option is exercised in full, an additional approximately $1,125,000 will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be $8,625,000 approximately.
The Offering is expected to close on or about March 31, 2017, and is subject to certain conditions including, but not limited to, the closing of the acquisition of Visible Measures and the receipt of all necessary approvals including approval of the TSXV. On closing, AcuityAds will pay the Underwriters a commission equal to 6% of the gross proceeds of the Offering in cash and will issue such number of broker warrants equal to 6% of the number of Shares sold in the Offering. Each broker warrant will be exercisable into Shares at the Offering Price for a period of two years from the closing date.
Future Aspirations of AcuityAds in Programmatic
CEO Hayek adds, “The addition of Visible Measures and their industry leading video analytics technology is a great fit and complement to Acuity’s Self-Serve programmatic marketing platform for marketers looking to leverage a ‘one-stop’ shop for all their digital marketing needs. We look forward to welcoming the Visible Measures team and their clients to AcuityAds as we strive to offer marketers the best solutions available to enable them to target and connect more effectively with their audiences across all channels and devices.”
AcuityAds already provides an ultra-intuitive Self-Serve Programmatic Marketing Platform in its technology suite. The Self-Serve Programmatic Marketing Platform was released in January 2017. By acquiring Visible Measures, AcuityAds will gain meaningful footprint that goes deeper into the dynamic hyper-growth programmatic video advertising market. Currently, the Toronto-based ad tech firm delivers advanced real-time bidding solutions with highly granular targeting capabilities for digital marketers. As a leading provider of programmatic advertising technology, AcuityAds enables advertisers and video publishers to connect intelligently with audiences across the web, mobile, social, and Internet TV.
According to eMarketer, digital video advertising industry is expected to touch $20 billion in 2020 where advertisers in the US alone will spend $4.43 billion on programmatic TV ads. By leveraging programmatic capabilities of Visible Measures and its proprietary patented video analytical tool sets, AcuityAds will be able to provide ‘one single glass pane” view to every video marketing and advertising campaign.
Visible Measures Commands Leadership Position in Video Ad tech
Visible Measures video advertising platform is driven by the combination of proprietary data set and patented programmatic technology, bringing five trillion touch points to reach 500 million monthly users across 600,000 digital devices. Regarded as a leader in video ad tech, Visible Measures has so far run 22,000 video campaigns from 6000 unique advertising agencies. Visible Measures True Reach® is a video performance measurement platform that is widely accepted as industry’s best-in-class video viewership metric, approved by Media Rating Council.
Revealing his experience at Visible Measures, CEO Brian Shin recounted, “It has been an amazing journey in building Visible Measures into the company that exists today with a blue-chip customer base and extensive partnerships and I am incredibly proud of the team and our accomplishments.”
“I firmly believe that in joining AcuityAds, advertisers will gain access to the industry’s most comprehensive suite of technology offerings to address their digital marketing needs more successfully.”
Adding Visible Measures into its business makes AcutiyAds well-placed to deliver what video advertisers are willing to invest in. CMOs can now justify where their investment would generate highest ROI at least cost of deployment.