Tremor International Ltd (AIM:TRMR) said it will buy California-based adtech business Amobee for US$239mln from Singapore Telecommunications Ltd to beef up its global market share.
The digital advertising company will fund the deal through existing cash resources and a new $100 million debt facility it hopes to agree prior to closing the transaction – expected in the third quarter of this year.
Additionally, the company expects to obtain about $50 million in a revolving credit facility which, along with existing surplus cash resources, is available for future strategic investments and initiatives.
Amobee is a leading global advertising platform serving over 500 customers globally and operates across three core business segments: Omnichannel Demand Side Platform, Amobee Advanced TV Platform and Email Marketing Platform.
Tremor will acquire Amobee's Omnichannel Demand Side Platform and Advanced TV Platform but will not acquire its Email Marketing Platform and related current and historical liabilities, which is expected to remain with the seller Amobee Group Pte. Ltd.
Accretive financial growth is expected within the first twelve months of completion, largely across Tremor International's DSP business, a statement said.
For the twelve months ended June 30, 2022, Amobee generated preliminary unaudited Contribution ex-TAC of about $150mln, excluding the results from Amobee's Email Marketing Platform, which would reflect a significant addition to Tremor's platform.