Investment and M&A Dormancy in Ad Tech Coming to an End: A Look at Recent Moves

Investment and M&A Dormancy in Ad Tech Finally Comes to an End

After a period of dormancy, the ad tech industry is experiencing a resurgence in investment and mergers and acquisitions. In June, the industry saw a flurry of activity, signaling a potential end to the lull that had been experienced in recent times.

One major merger that took place last month was between French firm Equativ and Canadian ad exchange Sharethrough. The combined entity, which is yet to be named, is set to command net recurring revenue exceeding USD$200m (£158m). This merger solidifies their position in key markets, particularly in the Connected TV (CTV) space, as both companies actively target expansion in this area.

Despite ongoing disruptions in the SSP space, both Equativ and Sharethrough have seen impressive growth, outpacing the average annual revenue increase reported across the ad tech industry. This growth is a positive sign for the industry, indicating a renewed interest in investment and consolidation.

In the mobile sector, Verve Group acquired mobile video and gaming network Jun Group for USD$185m (£146m). This acquisition, along with Voodoo’s purchase of social media platform BeReal for €500m (£422m), highlights the ongoing diversification efforts within the mobile space. These acquisitions are expected to drive further investment and consolidation in the coming months.

In the CTV and audio space, Walmart’s acquisition of TV manufacturer Vizio and Paramount Global’s merger with Skydance are significant moves that reflect the changing landscape of the industry. With concerns around profitability and brand visibility, companies are looking to consolidate and strengthen their positions in the market.

Overall, the recent flurry of activity in the ad tech industry signals a shift towards consolidation and investment opportunities. With more deals expected in the coming months, the industry is poised for growth and innovation. It seems that investment and M&A in ad tech are back in full swing.