Millennial Media announced Tuesday it will be acquiring Boston-based ad tech firm Nexage for roughly $107.5 million in cash and stock.
The Baltimore, Maryland-based independent mobile ad platform company acquired another Boston ad tech firm, Jumptap, in August 2013. That deal rang in at approximately $209 million.
With the acquisition of Nexage, a maker of Real-Time-Bidding technology that helps to automate the buying and selling of mobile advertising, Millennial Media will reassert its growing position in mobile advertising.
Millennial Media President and CEO Michael Barrett shared the company's vision in a statement, saying:
Our vision is to create a full-stack solution that enables us to open the flow of impressions, operate a leading independent exchange and maximize the yield for our publishers. The opportunity to integrate Nexage’s programmatic technology with our deep roots and heritage in agency relationships will uniquely position us in this fast paced ecosystem. Together, our companies will be able to offer managed services for agencies and a complete set of programmatic tools for automated buyers.
Nexage moved to Massachusetts in 2009, after stints in Washington and California, and employs 65 people in Boston, New York, San Francisco and London, according to Forbes. To date, Nexage has raised $24 million from the likes of GrandBanks Capital and Relay Ventures.
Under the terms of the agreement, Millennial Media will pay $22.5 million in cash and $85 million in stock. In turn, Nexage shareholders will receive approximately 37 million newly-issued shares of Millennial Media based on a price of $2.21 per share.
"Millennial Media is an extremely well known name in our industry, and a real pioneer and leader in bringing brand dollars into mobile,” said Ernie Cormier, president and CEO of Nexage, in a statement. “I believe the addition of Nexage’s platform and people will further Millennial Media’s mission in creating a leading independent mobile advertising platform and vital programmatic marketplace.”
Image via Nexage
