SingTel's Amobee boosts ad space by acquiring Kontera and Adconion
Singaporean telecom SingTel’s subsidiary Amobee will now own Kontera and Adconion, and rise up in the competitive digital ad spaceBy Elaine Huang 11 Jun, 2014
Singaporean telecom conglomerate SingTel has today announced through an official release that it has purchased Adconion and Kontera to help its current advertising mobile subsidiary Amobee become a “one-stop digital advertising platform”.
According to the official document, Adconion, a US-based cross channel digital advertising company, has been acquired at a valuation of US$235 million. It added that the consideration payable is about US$209 million, excluding debt.
In addition, Kontera, another advertising company that is very much content-centric, has been acquired at a valuation and consideration payable of US$150 million. With offices in the US, the UK and Israel, its real-time digital content analysis platform will help advertisers and agencies make better informed decisions to achieve a better return-on-investment.
Allen Lew, CEO, Group Digital L!fe and Chairman, Amobee, said, “… These acquisitions will further differentiate Amobee and help solidify its position in the digital advertising market.”
The digital advertising scene is growing rapidly. In a presentation dated 11 June 2014, SingTel and Amobee shared that according to eMarketer, there would have been US$100 billion spent on digital advertising across all ad channels.
The same presentation noted that Adconion Direct North America and Adconion Australia reported US$185 million in its FY 2013 revenue. Kontera, on the other hand, reported US$26 million in its FY 2013 revenue. In Q4 FY 2014, Amobee reported US$35 million in revenue, which is an increase of 170 per cent, compared to Q4 FY 2013.
Mark Strecker, CEO, Amobee, said, “The digital advertising business is about scale and capitalising on the market opportunities with technology as a core differentiator. With these two acquisitions announced today, we have extended our product offerings, increased our sales footprint and reinforced Amobee’s leadership position in the fast growing digital advertising market.”