Adtech companies could see a wave of acquisitions in the coming year, said the CEO of a privately-held company that made an offer for a microcap video ad specialist.
Some analysts have been predicting consolidation in adtech, as firms try to keep up with advertising behemoths Google GOOGL and Facebook FB
“Acquisitions are likely as companies prepare for the next round of competition,” he said.
Some see last year's acquisition of AOL by Verizon Communications VZ as a big move in the adtech market.
Adaptive Medias, Inc., ADTM, a video technology company whose clients include publishers, content producers and brand advertisers, received an acquisition proposal from private digital advertising technology company AdSupply, Inc., for $35 million, or $1.50 per share.
The all-cash deal valued the firm at a more than 1,000% premium
Justin Bunnell, the CEO of AdSupply, which has annual revenue of about $45 million, said in an interview that Adaptive’s video products would fill a gap in the company’s product offerings.
And AdSupply planed to use its own software combined with Adaptive Media’s to block ad blockers, which have become a headache for many publishers. With stock prices having come down, Bunnell expects consolidation to continue.
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