Millennial Media, Baltimore-based independent company in mobile advertising and data, has signed a definitive agreement to acquire privately-held, Boston-based Jumptap in a predominantly stock transaction.
Under the terms of the agreement, based on Millennial Media’s closing share price on August 9, 2013, Jumptap shareholders will receive approximately 24.6 million shares of Millennial Media, corresponding to approximately 22.5% pro forma ownership post transaction. The closing of the acquisition is subject to the satisfaction of various customary closing conditions, including approval by Millennial Media’s stockholders.
Jumptap is a mobile advertising platform, which recently has taken a programmatic and mobile-first approach to reaching audiences. Jumptap has an audience profile store with over 100 million unique, data-rich profiles, of which more than 44 million can be reached across various screens – online and mobile. Jumptap supports its audience targeting through partnerships with more than 20 third-party data providers. Jumptap also has 55 issued patents and more than 50 patents pending, covering broad aspects of the mobile advertising market.
Millennial Media’s platform will now include Jumptap’s offerings, and will result in consolidation and differentiated scale in the fast-growing mobile ad market. The companies’ combined strengths in brand and performance advertising, strategic position as a partner to developers, advances in programmatic and real-time bidding, and the use of data for improved targeting will help its customers and other industry stakeholders maximize the opportunity that mobile presents.
For mobile advertisers and agencies, the combined company will offer the largest and most complete suite of audience solutions with yet unparalleled brand and performance capabilities. The combination will deliver market-leading data, targeting, video, rich-media, cross-screen, programmatic bidding/buying and measurement solutions – driving improved buying experiences and better analytics, relevancy and performance. Millennial Media will enable deeper insights from a greater number of ad campaigns, run across a variety of screens. With an intense focus on customer service and execution, Millennial Media will take the complexity out of delivering digital audiences across mobile and web at a time when consumers hop between screens with increasing ease.
For mobile developers and publishers, Millennial Media will provide access to a larger scope of managed, self-service and programmatic tools – creating more powerful and comprehensive opportunities to monetize their inventory more efficiently and effectively.
“Millennial Media already runs one of the largest third-party digital media businesses, despite mobile being in its early stages,” says Paul Palmieri, president and CEO, Millennial Media. “Jumptap’s expertise in performance, cross-screen, real-time bidding and third-party data fit well with, and provide incremental scale to Millennial Media’s existing platform,”
George Bell, CEO, Jumptap, who will join the board of Millennial Media and become vice-chairman upon closing of the transaction, says, “I feel strongly that the addition of Jumptap’s products, people, and technology to the market-leading Millennial Media portfolio will further the mission of building the leading mobile platform worldwide.”