Mobile Ad Firm Taptica Acquires Tremor Video’s Demand-Side Platform for $50 Million

Latest example of major ad-tech consolidation

Tremor Video will help Taptica gain a bigger foothold in the U.S.
Facebook: Taptica, Tremor Video

In a move to beef up its offerings for marketers and agencies, Israeli-based mobile ad-tech company Taptica has purchased the demand-side platform portion of Tremor Video’s business for $50 million.

Tremor’s business is split between two models—a demand-side platform (DSP) and a supply-side platform (SSP). Demand-side platforms help brands and agencies manage and target campaigns using technologies like programmatic advertising while the supply-side platform plugs into publishers’ websites to manage ad inventory. The former business model is particularly lucrative, according to Tremor Video. The company claims that its sell-side platform has grown 83 percent in the past year with net revenues of $34 million.

“The transaction provides a clear path to accelerate the expansion of our SSP, which has experienced significant growth since its introduction and triple digit growth year-over-year,” said Tremor Video CEO Mark Zagorski in a statement. “This strategic decision positions us even more advantageously with premium video publishers and leading DSPs to support the evolution of video advertising by developing the next generation of software and services for premium video content creators across all devices and formats.”

When Tremor went public in 2013, the company’s stock was priced at $10 a share but like other high-profile ad-tech companies (think Millennial Media and RocketFuel) the company has struggled to keep up with more competitors and expectations from investors. On Monday, the company’s stock was trading at $2.23 a share.

Under Taptica, a new, independent company called Tremor Video DSP will be led by Lauren Wiener to expand the company’s U.S. presence. Taptica claims to have data on 220 million consumers that advertisers use for ad targeting.

In a statement, Taptica suggested that Tremor is only one of more acquisitions that the company has planned. “Taptica will continue to invest in and grow the existing business and products to become the leader in demand side mobile and video advertising,” the company said.

“With this deal, Taptica strategically aligns complementary talent and expertise with Tremor’s demand-side platform to create a powerful market force,” said Hagai Tal, CEO of Taptica. “Tremor Video’s positive brand value and awareness in the U.S. will enhance Taptica’s solution and market positioning.”