Consolidation in the video ad-tech space continues apace: Innovid, a provider of connected-TV advertising delivery and measurement, announced plans to buy media-attribution firm TVSquared for $160 million.
TVSquared tracks response to TV and digital video advertising to try to determine the effectiveness of marketing spend. The Edinburgh, Scotland-based company’s clients and partners include NBCUniversal, Roku, Sky, Hulu, Tegna, Tubi and Comcast’s FreeWheel. TVSquard claims it tracks more than 100 million households globally and more than 75 connected-TV platforms.
According to Innovid, the addition of TVSquared will let it establish a new “currency-grade standard for cross-platform measurement” of advertising. The $160 million purchase price consists of $100 million in cash and $60 million in stock consideration.
Innovid expects the TVSquared acquisition to close by the end of Q2 2022, subject to usual closing conditions. Upon closing, TVSquared founder/CEO Calum Smeaton will step down as chief exec to assume a strategy role “in support of the integration with Innovid.” TVSquared president Jo Kinsella will join the Innovid executive team to lead the measurement business, reporting Innovid CEO and co-founder Zvika Netter.
It’s the first acquisition announced by Innovid since it became a publicly listed company trading on New York Stock Exchange (under the ticker symbol “CTV”) in December 2021 following the completion of its combination with ION Acquisition Corp 2 Ltd., a special purpose acquisition company (SPAC).
“In acquiring TVSquared, we aim to provide the most complete view of the total TV and digital universe through a scalable, currency-grade measurement platform,” Netter said in a statement.
Innovid said TVSquared’s total revenue for the full year of 2021 is expected to be $20 million-$22 million.
Separately, Innovid released preliminary Q4 and full-year 2021 results, estimating revenue for the full year 2021 of $89 million-$90 million (30%-31% year-over-year growth) with adjusted EBITDA of $1 million-$2 million. Innovid anticipates full-year 2022 organic revenue growth of 22%-28% with positive adjusted EBITDA.