Telenor has agreed to buy 95% of US marketing technology group Tapad for US$360m on a debt and cash-free 100% basis. Norwegian founders Are Traasdahl and Dag Liodden will retain a 5% stake as well as their respective CEO and CTO roles. The sellers are Are Traasdahl and his investment company Spring Capital (46.5%), FirstMark Capital, Firsthand Technology, Avalon Ventures, WPP and Metamorphic Ventures.
Telenor (OSE:TEL) has agreed to buy 95% of US marketing technology group Tapad for US$360m on a debt and cash-free 100% basis. Norwegian founders Are Traasdahl and Dag Liodden will retain a 5% stake as well as their respective CEO and CTO roles.
The sellers are Are Traasdahl and his investment company Spring Capital (46.5%), FirstMark Capital, Firsthand Technology, Avalon Ventures, WPP and Metamorphic Ventures.
Founded in 2010, the company provides publishers, marketers and technology with a “holistic view of consumers across devices and screens”.
“With the acquisition of Tapad, Telenor Group is taking a position within the rapidly growing market for advertising technology, and securing important competence within digital marketing and analytics. I believe significant value can be created from applying marketing technology to improve the digital capabilities of our core telecom business. This will improve our understanding of customer behaviour, and supports building a platform for other business areas,’’ commented Telenor CEO Sigve Brekke.
Tapad claims to have more than 160 top US brands as customers, and more than 50 data technology licensing partnerships. In 2015, the company is expected to report unaudited revenues of US$57m, a year-on-year increase of 70%, and an EBITDA loss of US$12m. In 2016, the company is forecasting US$90m in revenue, and Telenor expects it to reach EBITDA break-even in 2017.
Tapad has a staff of 160 in 13 cities across the US and Europe.
Telenor said it sees solid growth opportunities in both Tapad’s established markets and within its own emerging markets footprint.
It said it aims to deliver a “broad range of relevant, personalised and engaging digital services [and] improve efficiency by further digitising our core business, including… sales, marketing and distribution. Telenor noted that it had previously taken positions within new digital business areas within the Internet of Things, online classifieds and financial services.
The transaction is subject to regulatory approvals, with closing expected in Q1 2016.