Altice NV : Altice acquires Teads, the No. 1 online video advertising marketplace in the world

Altice acquires Teads, the No. 1 online video advertising marketplace in the worldMarch 21, 2017- Altice N.V. (Euronext: ATC, ATCB) announces today that it has entered into an agreement to acquire Teads, the No. 1 online video advertising marketplace in the world with an audience of more...

London, 21/03/2017 (informazione.it - comunicati stampa - telecomunicazioni)

- Altice N.V. (Euronext: ATC, ATCB) announces today that it has entered into an agreement to acquire Teads, the No. 1 online video advertising marketplace in the world with an audience of more than 1.2 billion unique visitors including 720 million via mobile.

Teads, founded in 2011, is the inventor of outstream video advertising and No. 1 video advertising marketplace in the world . Publishers work with Teads to create brand new video inventory and manage their existing inventory, monetizing it through their own sales force, Teads sales force, or programmatic buying.

Teads' native video advertising solutions encompass a series of formats inserted deep into media content, like the inRead playing inside articles. It is changing the game within the video advertising market by creating unprecedented levels of premium inventory, which did not exist before.

Brands and agencies can access this top-tier, premium inventory, available on the web and on mobile, through programmatic or managed services. Through its managed services capabilities, the Teads team execute on their clients behalf using its platform.

Teads revenue grew by 44% in 2016 to an estimated €187.7 million.

The acquisition combines the highly complementary strategic assets of Teads and Altice.

      

This acquisition is another critical component for Altice's global advertising strategy. Altice will provide clients with data-driven, audience-based advertising solutions on multiscreen platforms including TV, digital, mobile and tablets. It will also provide an open and intelligent advertising platform to the media industry, programmers and multichannel video programming distributors.

Together with sophisticated return on investment analysis capabilities, leveraging multiscreen subscriber data information, this puts Altice in a unique position to grow its global advertising platform and better monetize its core telecommunications access and content business.

Importantly, the combination is expected to provide immediate commercial and financial benefits to Altice's advertising business, in particular as it relates making unique first-party data available to Teads in the US and France.

The acquisition values Teads at an enterprise value of up to €285 million on a cash and debt free basis. Teads announced record results for 2016, reporting 44% organic revenue growth year over year. The company was EBITDA positive for the fourth year in a row. Since Teads spends only a nominal amount on capital expenditures, the acquisition is immediately accretive to Altice's operating free cash flow before taking into account the expected synergies and strategic benefits of the transaction.

The acquisition purchase price is subject to Teads achieving certain revenue targets in 2017. 75% of the acquisition purchase price will be due at closing.  The remaining 25% earn-out is subject to Teads' 2017 revenue performance and will become payable in early 2018. 

The senior management of Teads, including Executive Chairman Pierre Chappaz and Chief Executive Officer Bertrand Quesada, will continue to lead the business going forward and have agreed to reinvest a significant portion of their proceeds.  Pierre Chappaz will join Altice's Management Board responsible for all of its advertising activities.

The acquisition is subject to certain competition reviews and is expected to close in mid-2017.

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Michel Combes, CEO of Altice, said:

Pierre Chappaz, Founder and Executive Chairman of Teads, said:

Nick Brown: +41 79 720 15 03 / nick.brown@altice.net

Arthur Dreyfuss: +41 79 946 49 31 / arthur.dreyfuss@altice.net

Nicole Matthews : nicole.matthews@teads.tv

Founded by telecom entrepreneur, Patrick Drahi, Altice is a multinational cable, fiber, telecommunications, contents, media and advertising company with presence in four regions - Western Europe (comprising France, Portugal and Switzerland), the United States, Israel, and the Overseas Territories (currently comprising the French Caribbean, the Indian Ocean regions and the Dominican Republic). Altice provides very high speed based services (high quality pay television, fast broadband Internet and fixed line telephony) and, in certain countries, mobile telephony services to residential and corporate customers. Altice is also active in the media space with a portfolio of channels (News, Sports, Lifestyle etc.) as well as providing Premium content on nonlinear platforms; it also produces its own original content (Series, Movies etc.).
Altice (ATC & ATCB) is listed on NYSE Amsterdam.  For more information, visit www.altice.net