Liberated Syndication Inc. (OTCQB:LSYN) (“Libsyn” or the “Company”), the industry’s leading podcast hosting platform, today announced it has closed the previously announced acquisition of AdvertiseCast, LLC (“AdvertiseCast”).
Marketing Technology News: Brands Love ‘Customer Segmentation,’ Agencies Not So Much, According to Bombora Company…
“We believe AdvertiseCast, a market leader in podcast advertising, is a perfect fit with Libsyn’s strategy to provide independent podcasters robust tools. In addition to host-read and programmatic advertising, we have identified even more synergies between our respective customer bases that will create additional upside for strong monetization solutions.”
The consideration at closing consisted of $30 million, of which $18 million was paid in cash; $10 million in the form of newly issued Libsyn shares; and $2 million in the form of an earn-out, which is subject to the terms and conditions of the purchase agreement. AdvertiseCast Co-Founders Trevr Smithlin and Dave Hanley will remain with AdvertiseCast and serve as Chief Innovation Officer and Chief Revenue Officer, respectively.
Libsyn President Laurie Sims stated, “We believe AdvertiseCast, a market leader in podcast advertising, is a perfect fit with Libsyn’s strategy to provide independent podcasters robust tools. In addition to host-read and programmatic advertising, we have identified even more synergies between our respective customer bases that will create additional upside for strong monetization solutions.”
Marketing Technology News: MarTech Interview with Dmitri Lisitski, Co-founder and CEO at Influ2
Ms. Sims continued, “Libsyn and AdvertiseCast had the opportunity to present at the IAB Upfronts held in May 2021, highlighting shows hosted on Libsyn along with clients of AdvertiseCast. The IAB reported almost 7,000 registrants for the three-day event, Podcast Upfront’s biggest virtual audience to date. It is clear from the reception we received that advertisers are enthusiastic about our combined customer bases. These synergies will create additional upside to attract advertisers to our platform. This feedback is consistent with industry growth estimates we are seeing. For example, IAB projects podcasting will see $1 billion in ad revenue in 2021 and $2 billion in 2023.”1
AdvertiseCast Co-Founders Trevr Smithlin and Dave Hanley commented, “AdvertiseCast has started 2021 off with a strong first quarter and our partnership with Libsyn will help accelerate our growth throughout the marketplace. In working with Laurie and her team since we announced the transaction, we have found a group of dedicated people who are extremely motivated to solidify Libsyn’s position as a market leader in the podcasting space including the rapidly-growing advertising market.”
In conjunction with the closing of the AdvertiseCast acquisition, Libsyn also closed on a private placement led by Camac Partners, LLC, which was a pre-existing shareholder, new shareholder Hudson Executive Capital, LP, and several other new and existing investors. The gross proceeds from the private placement were $25 million.
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
Libsyn was represented by West Arrow LLC who served as exclusive financial advisor and Faegre Drinker Biddle & Reath LLP as legal counsel. AdvertiseCast was represented by Telos Advisors LLC who served as exclusive financial advisor and Burns & Levinson LLP as legal counsel.
Marketing Technology News: Moz Acquired by iContact