Mediaocean's M&A Merry-Go-Round Takes Another Twist

Business has been brisk over the past year for the ad-tech sector’s dealmakers, with the number of mergers and acquisitions now firmly in the double digits. Earlier this week, it was Mediaocean's turn to be acquired, with private equity outfits CVC and TA agreeing to purchase its wares from Vista Equity Partners for an undisclosed sum. Mediaocean, a company that has historically been labeled as a billing provider in the advertising world, has set about transforming itself in recent years, with its new ownership expected to fund further expansion. The deal, which is widely speculated to have been north of $1.5 billion, is on course to close in Q4 2021 with industry observers saying it is emblematic of ad tech’s growing maturity. S4 Capital Hopes to Raise $126 Million to Further Expand Through Mergers Mediaocean's evolution Vista Equity Partners purchased a majority stake in Mediaocean in 2015 in a deal that was valued at $720 million, and since then has gone about modernizing its platform as the private equity group sought an exit. In late 2018, Vista was reported to have sought a buyer for Mediaocean with a reputed $1.5 billion price tag. Although, this came at a time when ad tech was out of favor among investors, a mood that has apparently since changed. Since then, Mediaocean has gone on an acquisition spree of its own with the 2020 purchase of 4C Insights, followed by the $500 million purchase of Flashtalking, a deal made public last month. In an emailed statement to Adweek, Flashtalking CEO John Nardone explained how Mediaocean’s recent purchases would help evolve its offering beyond media buying and financial processing. “The acquisition of 4C helped Mediaocean extend capabilities into the walled gardens—or, as we call them, closed ecosystems,” according to Nardone. “And Flashtalking adds functionality for creative, serving, verification and analytics—spanning both the open web and closed ecosystems.” Market maturation The sale of Vista Equity Partners’ interest in Mediaocean comes the same year as it invested $1.4 billion in sell-side player TripleLift. In addition, Vista’s other ad-tech asset Integral Ad Science has also joined the raft of companies in the sector that listed on the public market resulting in a multibillion-dollar valuation. Market observers told Adweek these maneuverings are typical of how different private equity groups focus on specific sectors of the market. Some favor early-stage prospects, while others prefer more mature outfits. “For a young industry, the [private equity] interest has always been at the low to middle end [of the market] … and with companies like CVC coming into the market, that’s a good thing,” said Ana Milicevic, principal and co-founder at Sparrow Advisers. “I’d take that as an indication of the increased maturity of ad tech and the increased commercial opportunity these funds are recognizing.”