DG acquires ad tech co Peer39 for $15.5m
Peer39, which has raised $30 million, will be integrated into MediaMind, the Israeli company acquired by DG last year.
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."
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