Two of the UK’s leading online video marketing firms are planning a merger.
Taptica PLC (LON:TAP) and RhythmOne PLC (LON:RTHM) confirmed discussions are at an advanced stage.
READ: Taptica suspends share buyback program as it begins talks with potential acquisition target
The deal is structured as an offer by Taptica that will see it owning 50.1% of the enlarged group and Rhythm One owning the remaining 49.9%
“A merger will form one of the leading video advertising companies in the US, delivering significant economies of scale, product offering, revenue synergies and supply chains to compete with the industry leaders,” said the statement.
RhythmOne specialises in online video placement, while Taptica uses ‘big data’ and artificial intelligence to target adverts at its clients’ desired audiences.
According to overnight reports, the new company will operate under the Taptica brand and be run by Ofer Druker, currently the head of its US division.
Taptica shares were up 13.7% to 190.5p in late-afternoon trading, although RhythmOne shares dropped 12.5% to sit at 163.8p.
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