Outbrain Inc. introduced the closing of its acquisition of Teads, following receipt of all mandatory regulatory approvals. The 2 firms will merge their respective branding and efficiency choices to create the omnichannel outcomes platform for the open web, and can function beneath the identify Teads.
The brand new Teads will set up a big, optimised provide path on the open web, connecting choose media environments with data-driven artistic options. The mixed firm will combine Outbrain’s predictive know-how and AI optimisation, providing entrepreneurs a single companion for attaining outcomes throughout the advertising funnel.
“I’m extraordinarily enthusiastic about this new chapter in our journey. This transformative merger creates an organization that immediately addresses a big hole within the promoting business: a scaled end-to-end platform that may drive outcomes, from branding to consideration to buy, throughout screens,” mentioned CEO, David Kostman.
“Collectively, we’re creating a rare new firm, combining the perfect of each organisations’ deep experience in omnichannel video branding options and efficiency promoting. The brand new Teads’ mission is to drive lasting worth with an providing that invitations entrepreneurs to anticipate higher outcomes, media house owners to anticipate sustainable worth, and shoppers to anticipate elevated experiences. I need to thank the groups of each Outbrain and Teads, who’ve pioneered main promoting classes, and have constructed main international firms over greater than a decade. It’s their innovation and dedication which have introduced us to this second and can propel us to new heights,” added Kostman.
Co-president and chief enterprise officer, Jeremy Arditi, added: “We’re dedicated to creating an answer that can harness the untapped alternative of the open web, and permit all of its constituents to thrive. We imagine that by prioritising stunning artistic experiences, belief and transparency in media, and supply of significant outcomes, we will create a stronger ecosystem that gives worth for all.”
“The merger between Teads and Outbrain makes lots of sense strategically. We look ahead to exploring the brand new prospects this offers us with to achieve our audiences in a brand new and attention-grabbing method, to ship full funnel options and higher enterprise outcomes,” mentioned Sital Banerjee, international head of built-in media, efficiency advertising, and BMI administration at Lipton Teas and Infusions.
Outbrain, Altice and Teads have amended the beforehand introduced share buy settlement, dated August 1, 2024. Underneath the phrases of the revised settlement, Outbrain will likely be paying a complete consideration of roughly $900 million, consisting of $625 million upfront money and 43.75 million shares of frequent inventory of Outbrain (valued at roughly $263 million primarily based on the closing worth of Outbrain’s frequent inventory as of January 31, 2025, of $6.01).
Underneath the revised phrases, there is no such thing as a deferred money fee or convertible most popular fairness part. The revised phrases have meaningfully decreased the extent of required debt financing and simplified the transaction construction.
Outbrain intends to finance the transaction with present money sources and $625 million in dedicated debt financing from Goldman Sachs Financial institution USA, Jefferies Finance LLC and Mizuho Financial institution, Ltd., topic to customary funding situations. Outbrain may even difficulty to Altice 43.75 million shares of frequent inventory. Altice will nominate two administrators to the board of Outbrain and will likely be sure by a stockholder settlement with Outbrain containing preparations and restrictions regarding voting and disposition of the shares issued to Altice.
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