Vonetize acquires Takoomi’s video advertising operations
Noam Josephides, Vonetize’s founder and CEO: “Today we announce the acquisition of the video advertising operations of a technological leader. We expect the newly-acquired operations to support and scale our business model with video-focused advertising. Vonetize seeks to manage the entire value chain to the end consumers, whereas Takoomi’s strength lies in its ties with the advertisers and ability to serve personalized and optimized video ads on connected devices. The acquisition will help Vonetize gain hold of the entire value chain of the OTT content service. Television and content distribution are two fields that are experiencing far-reaching transformation; companies that fail to identify at an early stage the market changes and the technologies that will shape our screens in the coming years will have a hard time surviving. The emergence of internet-based TV and content platforms is changing the rules of the game for all players, including content providers, broadcasting platforms and advertisers. Big Data is the new name of the game in the media domain as it provides information about viewers’ preferences and content consumption habits, and generates new, untapped value for advertisers of the kind and scope that never existed in the traditional TV broadcasting platforms.”
- Acquired operations expected to contribute to Vonetize NIS 8 million in revenues in 2018 and NIS 2 million in gross profit, thus significantly increasing the Company’s revenues.
- The transaction will be based on cash and Vonetize shares. 60% of the transaction value is conditioned on Takoomi meeting revenue growth targets and maintaining profitability margins for at least two years.
- The acquired operations will allow Vonetize to offer advertising-based viewing in addition to the current payment-based model.
- Takoomi ended 2016 with NIS 7 million in revenues and NIS 1.7 million in gross profit.
- Takoomi’s client base includes over 400 websites and applications and over 200 million unique visitors per month.
Vonetize, which specializes in development and distribution of OTT multi-channel content and TV platforms, today announced it has signed a MoU to acquire the video advertising operations of Takoomi in exchange for cash and stock. The acquisition is part of Vonetize’s strategic plan to expand its service offering. Takoomi’s profitable operations may improve Vonetize’s financial results.
The acquisition further strengthens Vonetize’s position in the TV market, opening up opportunities for expanding into advertising. Following the acquisition, Vonetize will be able to offer advertising as part of its video services, thus providing a broader solution to clients and partners in the markets it serves.
To read the Company’s report on the acquisition in MAYA: http://mayafiles.tase.co.il/rpdf/1135001-1136000/P1135167-00.pdf