Israeli media content recommendation company Outbrain (Nasdaq: OB) announced today that it has entered a definitive agreement to acquire Swiss-based contextual video technology platform for digital and connected TV media owners video intelligence AG (vi) in a $55 million cash and share deal.
vi’s contextual and machine learning technology enables media owners to enhance user engagement and monetization by adding relevant video content to articles. The company also provides advertisers with high-impact, highly viewable, brand-safe video ad inventory that drives awareness and user engagement.
Outbrain co-CEO David Kostman said, "vi fits perfectly into Outbrain’s core strategy of providing media owners with technology to enhance user engagement and monetization through relevant content and ads."
Outbrain cofounder and co-CEO Yaron Galai added, "The combination with vi will allow us to deepen our partnership with media owners, providing mid- and top-of-article video solutions. It will also expand our addressable market, introducing high-quality in-stream video inventory to support our brand advertisers. We see significant synergies between our companies and we are very excited to welcome the incredibly talented and experienced vi team to Outbrain."
vi cofounder and CEO Kai Henninges said, "We are delighted to join Outbrain, and become a core part of creating the leading video engagement platform. Our years of video expertise and unique offering for publishers and CTV providers are a perfect addition to Outbrain’s leading market position and premium global media owner partnerships. Together we will accelerate our mission to inspire, inform and entertain users by putting video in context. We believe we have found a great match between our companies’ cultures and we share the same vision of the future of media."
Outbrain will acquire vi for an aggregate purchase price of $55 million, funded by $46.75 million of balance sheet cash and 412,500 Outbrain shares. The transaction is expected to close in the first quarter of 2022 and is expected to be accretive in the first year. Progress Partners acted as exclusive M&A financial advisor to vi.
Outbrain held its IPO in July at a then disappointing valuation of $1.12 billion and its market cap has since fallen to $847.6 million. The company's share price is currently down 1.62% on Wall Street at $15.13.
Published by Globes, Israel business news - en.globes.co.il - on November 22, 2021.
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