BLINKX PLC ACQUIRES ADKARMA, LLC
Leading Video Supply Side Platform Enables blinkx to Further
Expand its Footprint within the Programmatic Advertising Ecosystem
London, England and San Francisco, CA - 19 December 2014 - blinkx plc ("blinkx" or the "Company"), the Internet Media platform that connects audiences with brands through professionally generated content, today announces that it has entered into an agreement (the "Acquisition Agreement") to acquire AdKarma, LLC ("AdKarma" or the "Acquisition"), a leading video supply side platform ("SSP") for an initial consideration of $15m in cash plus an additional $5m in cash or stock at the Company's option, payable on the first anniversary of the transaction (the "Acquisition Consideration"). The initial consideration for the Acquisition will be funded entirely from the Company's existing cash reserves.
Highlights
The Acquisition is expected to significantly bolster and accelerate the Company's position within the programmatic or automated trading segment of the digital video advertising market. AdKarma brings to blinkx extensive supply and demand side relationships, along with access to key programmatic video technology. The addition of transparent desktop and mobile video inventory at scale will enable the company to further expand its premium video advertising footprint through its direct and programmatic demand side relationships. blinkx expects AdKarma to be earnings accretive in the first full year post acquisition.
AdKarma has consistently demonstrated a strong financial and operational profile. The latest available audited statements indicate:
· Gross revenue of $13.3m in calendar year 2013, an increase of 102% over calendar year 2012;
· Gross profit of $2.4m in calendar year 2013, an increase of 118% over calendar year 2012;
· Income from Operations of $0.6m in calendar year 2013;
· Gross assets of $5.3m as at 31 December 2013; and
· Estimated calendar year 2014 revenue of at least $20m (unaudited) and Income from Operations of at least $3m (unaudited), based on blinkx accounting policies
In addition to its financial contributions to the Company, the Acquisition is expected to:
· Accelerate the growth of the Company's online video advertising business, both desktop and mobile - the fastest growing segments within online advertising;
· Enable blinkx to satisfy growing brand advertiser demand for premium, cross-platform online and mobile video advertising campaigns and inventory at scale;
· Provide access to proprietary technology and established programmatic supply and demand side relationships to extend blinkx's desktop and mobile video footprint; and
· Add a talented team, with extensive expertise, experience and relationships in cross-platform video advertising and programmatic trading
Commenting on the Acquisition, S. Brian Mukherjee, CEO of blinkx, said, "blinkx's stated growth strategy is focused on three key areas - video, mobile and programmatic, which we feel represent the future of digital brand advertising. We believe AdKarma delivers in all three areas for the Company. We are particularly encouraged by AdKarma's high-growth mobile business, which complements our own initiatives in this channel. We expect the Acquisition to expand our supply footprint with quality, transparent inventory and accelerate our growth in the fast expanding programmatic video advertising space. We are thrilled to welcome such a capable and successful team to the blinkx family. The deal further underscores our vision to become the leading, cross-screen, premium video technology platform, connecting consumers and brands through premium content worldwide."
For further information please contact:
Analyst and Investor Contact Dan Slivjanovski blinkx plc (US) 650 731 2431
|
Financial Media Contacts Edward Bridges/Charles Palmer FTI Consulting (UK) 020 7831 3113 |
NOMAD and Joint Broker for blinkx plc Charles Lytle/Christopher Wren Citigroup Global Markets Ltd (UK) 020 7986 4000 |
Joint Broker for blinkx plc Lorna Tilbian/Nick Westlake/Mark Lander Numis Securities Limited (UK) 020 7260 1000 |
About blinkx
About AdKarma
AdKarma is a rapidly growing video supply side platform located in Columbia, MO. AdKarma has strong relationships with supply partners, including integrations with many leading ad networks and exchanges with over 300 publishers representing in excess of 20,000 websites for inventory across display, rich media and video. Ranked as one of Inc. 500's fastest growing businesses in the country, AdKarma has attracted some of the brightest advertising minds focused on driving growth and establishing relationships with the industry's top advertising and publishing partners.
You are here: news > regulatory news