Dutch telco Altice announced today that it to acquire Teads, the outstream video advertising marketplace. The acquisition values Teads at €285 million, following what was a strong year for Teads, who reported 44 percent organic growth year over year in 2016, with revenues climbing to €187.7 million. The acquisition purchase price is subject to Teads achieving certain revenue targets in 2017 and 75 percent of the acquisition purchase price will be due at closing. The remaining 25 percent earn-out will be subject to Teads’ 2017 revenue performance and will become payable in early 2018.
Altice already has a large international advertising business with revenue in excess of € 700 million per year, and the company has unique first-party data sets with c.50 million unique fixed and mobile customers globally (over 30 million of which are in the US and France). Through divisions like Altice Media Solutions, the company is already working across TV and digital, and most recently the company acquired Audience Partners to boost their data analytics capabilities.
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.
Michel Combes, CEO of Altice, said, “Convergence of telecoms, content, and advertising is at the core of our business. There is significant incremental value to be generated from our assets. Teads, a powerful business in itself, with major presence in Altice footprint notably in the U.S. and France, will enable us to offer a truly unique value proposition to brands and agencies on the one hand and the media industry, programmers and distributors on the other. It is that value proposition – data-driven, measurable and multiscreen – which will enable us to significantly grow our advertising business. We are very excited to partner with Pierre, Bertrand and their talented team.”
Pierre Chappaz, Founder and Executive Chairman of Teads, said, “We are excited to start this new phase of Teads and become part of the internationally renowned Altice team. Since our inception we have strived to offer our clients with superior advertising solutions based on measurable performance and technological innovation. As part of Altice, we will be able to offer even more tailored, data-driven solutions and take our value proposition from the digital world to a multiscreen platform, which includes TV, digital, mobile and tablets. It is this differentiated offering which will allow Altice and Teads to uniquely prosper in the global advertising market.”