Israeli online advertising and analytics platform Innovid has announced that it is expanding the private placement of common stock (PIPE) funding for its SPAC merger with ION Acquisition Corp. 2 by $50 million. Innovid announced the SPAC merger in June at a company valuation of $1.3 billion.
Innovid has developed an independent platform for delivering and measuring connected TV digital ads. The company was originally due to raise $403 million as part of the SPAC merger including $253 million from ION Acquisition Corp. 2 and $150 million in PIPE funding from large institutional investors including Fidelity, Baron capital, and funds connected to ION as well as Israel Phoenix Assurance Ltd. (TASE:PHOE1). The PIPE funding will now rise to $200 million, after some of the investors increased their commitments. The SPAC merger is due to be completed before the end of the year, after which Innovid will begin trading on the NYSE.
Innovid CEO Zvika Netter said, "The rapid increase in CTV advertising investment has created an undeniable opportunity for Innovid’s independent technology platform to deliver and measure CTV advertising free of media bias. This expanded investment further demonstrates a vote of confidence from leading institutional investors in our vision after a strong first half of 2021. We believe this is only the beginning as more viewers and dollars shift from linear TV to CTV, and are proud to carry the CTV name in our ticker symbol."
ION CEO Gilad Shany said, "We are pleased to see additional demand from top-tier investors as we approach the closing of our business combination with Innovid. Demand for the PIPE continues to exceed our initial targets and the expansion to $200 million under the current market conditions is a powerful testament to the business Innovid has built and its future growth opportunity. I look forward to joining the board after closing and deepening the close strategic relationship ION has built with Innovid’s management team over the last few months."
Published by Globes, Israel business news - en.globes.co.il - on October 20, 2021.
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