Ad management and distribution platform company Digital Generation Inc. (DG) has
acquired Israeli ad tech company Peer39 Inc. for $15.5 million in cash and
shares. DG will integrate Peer39 into its MediaMindonline division. MediaMind is
an Israeli company that was acquired by DG 10 months ago for $514m.
deal is expected to be closed in the coming days with DG paying $10m. in cash,
issuing some 357,000 shares and assuming $2.3m. in earn out payment for Peer39’s
webpage level data applications.
From the point of view of Peer39’s
investors the exit is a disappointment. The company has raised $30m. since it
was founded in 2006 by Amiad Solomon and Jerusalem Mayor Nir Barkat. The main
investors include Canaan Partners, Dawntreader Ventures, Highbridge Capital,
Evergreen Venture Partners, JP Morgan’s SVB Financial Group and private
investors like Dan Ciporen and John Medved.
Peer39’s data has been proven
to drive significant performance for advertisers, while staying clear of online
privacy concerns. Since the data is strictly about the content and
structure of web pages, it has become a cookie-free solution that is integral to
buying and selling advertising online.
Peer39’s employees will join
MediaMind, DG’s online division, and Peer39’s CEO Andy Ellenthal will become
DG’s executive vice president of sales and ad operations for both the TV and
Online divisions. Peer39 is headquartered in New York and has its development
center in Petah Tikva. Of the company’s 39 employees, 26 are in
Ellenthal said, “Over the past several years I’ve watched DG
become the provider of choice for advertising delivery. More recently, DG has
made a number of strategic acquisitions of unique creative and delivery
businesses, like MediaMind, to address the growing online ad market.
with the addition of Peer39, Media- Mind customers can access a consumerfriendly
targeting solution for all their Premium and RTB buys while Peer39 customers
will benefit from MediaMind’s global footprint. I’m not aware of any other
company that has all the key ingredients to deliver what advertisers really
want: a toolset to create the best possible advertising results while minimizing
DG CEO Neil Nguyen said, “Advertisers are looking
to take advantage of RTB, a fundamentally disruptive and transformative trend in
online advertising. The Peer39 solution complements existing data-driven
solutions offered by MediaMind, strengthening our offering to the RTB trading