- Ad software provider Mediaocean will acquire ad server Flashtalking, according to a press release. The deal is worth $500 million, sources told The Wall Street Journal.
- The combined entity will handle global strategic planning, omnichannel media management, closed ecosystems optimization and financial reconciliation across traditional media, the open web, closed ecosystems and connected TV (CTV), per the release.
- After the acquisition, the company's platform will manage over $200 billion in annual media spend and more than 1 trillion monthly ad impressions. The deal comes as the independent Mediaocean boosts its omnichannel offerings for marketers looking for a neutral alternative to Big Tech ad platforms.
Mediaocean's reported $500 million acquisition of Flashtalking will give the independent ad software provider a more robust omnichannel offering. Mediaocean handles many aspects of the campaign process, from planning, buying and selling to analytics, invoices and payments, while Flashtalking is known primarily for its ad server. The two companies first partnered in 2018 to incorporate ad serving data into the media buyer workflow, and Flashtalking was named Procter & Gamble's global ad server of record in September 2020.
The deal arrives as marketers seek neutral alternatives to the ad platforms provided by Big Tech companies. The combined entity will allow marketers to plan and execute campaigns over a variety of channels, including closed ecosystems and CTV, both of which have risen in popularity as cord-cutting consumers spend more time online. The omnichannel offering is key for marketers looking to navigate this increasingly fragmented ad landscape.
"Our platform is not compromised by media ownership so we can focus solely on driving outcomes for marketers and their agency partners," Mediaocean CEO Bill Wise said in the press release.
CTV is the fastest growing part of both businesses, Wise told AdExchanger, giving the combined entity a leg up on this accelerating space that is driving growth in digital video. Mediaocean is not the only independent player looking to expand CTV ad sales: Magnite in April closed its acquisition of SpotX for approximately $1.14 billion, reportedly creating the largest independent CTV and video advertising platform in the programmatic marketplace.
The Mediaocean and Magnite deals come amid a surge in consolidation across the ad tech landscape as the market for independent companies shakes out. Earlier this year, programmatic platform TripleLift sold a majority interest to Vista Equity Partners, which also owns Mediaocean, while Extreme Reach, a maker of web-based software to manage video advertising, agreed to acquire competitor Adstream. Leading brands are also getting in on the M&A surge as they look to tackle needs around data and e-commerce.
Mediaocean's Flashtalking deal is expected to close in 2021's third quarter, per the release. It builds on Mediaocean's July 2020 acquisition of 4C Insights, which the company claimed created the largest independent and open software solution for the advertising market.