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RhythmOne snaps up YuMe in $185m deal
RhythmOne, the online advertising firm, has acquired digital video brand YuMe in a deal worth around $185m.
The company said it had paid YuMe shareholders $1.70 and 0.7325 ordinary shares of RhythmOne in exchange for each share of YuMe's common stock.
A total of 26,122,530 YuMe shares, representing around 74% of YuMe's stock, were tendered by the 1 February deadline.
Chief executive Ted Hastings said: "We are glad to welcome YuMe into the RhythmOne family.
"In addition to a tenured leadership team and strong demand relationships, YuMe brings premium video and connected TV inventory, unique customer insights and cross-screen, all of which are expected to augment our unified programmatic platform and accelerate growth of the combined enterprise."
YuMe chairman Eric Singer will take up the same role in the merged group, replacing RhythmOne's Raj Chellaraj, who stays with the AIM-listed business as a non-executive director. Also joining as a non-executive director is YuMe director John Mutch.
Current RhythmOne directors Suranga Chandratillake and Andrea Cunningham will resign once the merger completes,.
RhythmOne also updated on trading on Friday. It said the third quarter had been in line with management expectations, with growth in both topline revenue and profitability on an adjusted EBITDA basis.
On-platform programmatic revenue growth was the strongest, ahead approximately 13% year-on-year.
Hastings said he was "pleased" with the third quarter, adding that it demonstrated "progress against our targets in terms of revenue growth, profitability and product integration".
"We will maintain strong cost discipline, driving efficiency within the company with the aim of sustained profitability."