IBM launches first-ever start-up accelerator
Peer39, which has raised $30 million, will be integrated into MediaMind, the Israeli company acquired by DG last year.
Ad management and distribution platform company Digital Generation Inc. (DG) (Nasdaq: DGIT) has acquired Israeli ad tech company Peer39 Inc. for $15.5 million in cash and shares. DG will integrate Peer39 into its MediaMindonline division. MediaMind is itself an Israeli company that was acquired by DG ten months ago for $514 million.
The deal is expected to be closed in the coming days with DG paying $10 million in cash, issuing some 357,000 shares and assuming $2.3 million in earn out payment for Peer39's webpage level data applications.
From the point of view of Peer39's investors the exit is a disappointment. The company has raised $30 million since its was founded in 2006 by Amiad Solomon and high tech entrepreneur Nir Barkat (not to be confused with the Jerusalem mayor of the same name). The main investors include Canaan Partners, Dawntreader Ventures, Highbridge Capital, Evergreen Venture Partners, JP Morgan's SVB Financial Group and private investors like Dan Ciporen and John Medved.
Peer39's data has been proven to drive significant performance for advertisers, while staying clear of online privacy concerns. Since the data is strictly about the content and structure of web pages, it has become a cookie-free solution that is integral to buying (and selling) advertising online. Peer39's employees will join MediaMind, DG's online division, and Peer39's CEO Andy Ellenthal will become DG's executive VP Sales and Ad Operations for both the TV and Online divisions. Peer39 is headquartered in New York and has its development center in Petah Tikva. Of the company's 39 employees, 26 are in Israel.
Ellenthal said, "Over the past several years I've watched DG become the provider of choice for advertising delivery. More recently, DG has made a number of strategic acquisitions of unique creative and delivery businesses, like MediaMind, to address the growing online ad market. Now with the addition of Peer39, MediaMind customers can access a consumer-friendly targeting solution for all their Premium and RTB buys while Peer39 customers will benefit from MediaMind's global footprint. I'm not aware of any other company that has all the key ingredients to deliver what advertisers really want: a toolset to create the best possible advertising results while minimizing execution complexity."
DG CEO Neil Nguyen said, "Advertisers are looking to take advantage of RTB, a fundamentally disruptive and transformative trend in online advertising. The Peer39 solution complements existing data-driven solutions offered by MediaMind, strengthening our offering to the RTB trading market."
You comment was recieved and soon will be published.
Thank you for posting your comment, which will be reviewed for publication.
Load more comments
Alpha Zone in Petah Tikva will focus on big data, cloud computing and more.
Cyber security co Sentinel Labs raises $12m
It is the only company offering protection on Windows, Mac OSX and Android.
Microsoft chooses WEB3 as local digital media partner
WEB3’s clients include Cellcom, Tnuva, El Al, and Strauss.
Kaltura aims to be world's biggest video technology co
CEO Ron Yekutiel: The idea is to combine Wikipedia with YouTube.
Marvell Technology firing 200 in Israel
The company is firing 15% of its 1,300 employees in the country.
Amazon, Google, Microsoft battle to host developers
The Internet giants want to attract developers to build apps on their cloud-computing infrastructures.
Amdocs CEO: We strive for 5% annual growth
Eli Gelman fears complacency as the company expands in emerging markets.
Intel Israel development center to remain vital
Intel Israel president Mooly Eden tells "Globes" that Israel remains central to the chip company's plans.
SuperCom share price skyrockets 920%
SuperCom CEO Arie Trabelsi tells "Globes" how he has turned around the identity solutions company.
IMI enters cyber security arena
As privatization approaches, Israel Military Industries bets on a market with enormous growth potential.
Wanted: Arts majors for high-tech
Technology companies are looking for creativity, flexibility, and the ability to think outside the box.
2013 boom year for Israeli high-tech
In the first half of the year, there was a 52% rise in demand for mobile and web developers, and salaries are up as well.
CyberArk reboots network security
CEO Udi Mokady: Media reports on electronic surveillance make explaining our product unnecessary.
Architect Eli Attia: Google stole my life's work
Eli Attia has developed an innovative building design and construction concept that Google sees generating $120 billion annually.