NEW YORK - Cadent, a leading independent provider of converged TV advertising solutions, has announced a definitive agreement to acquire AdTheorent Holding Company, Inc. (Nasdaq: ADTH), a machine learning innovator in programmatic advertising, for $3.21 per share in cash.
This acquisition is set to create one of the largest independent omnichannel audience activation platforms for advertising buyers and sellers. The merged entity aims to deliver performance advertising solutions that span digital and traditional TV markets, leveraging advanced machine learning technology and a unified media and data marketplace.
Cadent's CEO, Nick Troiano, highlighted the strategic benefits of the merger, stating that it would enable customers to drive performance across all strategic audiences and connect the programmatic and TV advertising worlds. The combined company is expected to serve close to 1,000 advertisers and partner with leading agencies and premium publishers.
AdTheorent's CEO, James Lawson, expressed enthusiasm for the merger, emphasizing the shared commitment to delivering measurable results for customers and a complementary vision for the future of omnichannel advertising.
The transaction, which is subject to customary closing conditions, regulatory review, and AdTheorent shareholder approval, has been approved by AdTheorent's Board of Directors and is anticipated to close in approximately 90 days.
Montreal-based private equity firm Novacap, which acquired Cadent in August 2023, provided strategic services and funding support for the transaction. Samuel Nasso, Partner at Novacap and Chairman of the Board of Cadent, expressed confidence in the combined company's potential to lead in the omnichannel audience platform space.
The information in this article is based on a press release statement.
InvestingPro Insights
As Cadent moves to enhance its position in the advertising space with the acquisition of AdTheorent, investors and industry observers are closely monitoring the financial health and market performance of AdTheorent (Nasdaq: ADTH). According to InvestingPro data, AdTheorent is navigating the market with a significant market capitalization of $291.8 million USD, reflecting its standing in the programmatic advertising sector.
An intriguing aspect of AdTheorent's financial profile is its exceptional gross profit margin, which stands at a remarkable 99.18% for the last twelve months as of Q4 2023. This metric underscores the company's efficiency in managing its cost of goods sold and suggests a strong underlying business model. Additionally, AdTheorent's revenue growth has been positive, with a 2.85% increase over the last twelve months and an even more impressive quarterly growth rate of 15.21% in Q4 2023.
AdTheorent's market performance has been noteworthy, with a substantial 121.38% return over the last three months and a 148.84% increase over the last six months. These figures demonstrate a robust upward trajectory in the company's share price, which may be of interest to potential investors.
Two InvestingPro Tips for AdTheorent highlight the company's financial strengths and future potential. AdTheorent holds more cash than debt on its balance sheet, which provides a solid foundation for operational flexibility and strategic initiatives. Furthermore, analysts predict the company will be profitable this year, indicating a positive outlook for its financial performance post-merger. These insights, among others, can be further explored on InvestingPro, where an additional 10 tips are listed for AdTheorent, providing a comprehensive analysis for investors. For those interested, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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