Outbrain confirms Teads purchase in a $1 billion deal
After weeks of speculation, Outbrain has confirmed its purchase today of Teads in a deal valuing the acquisition target at just north of $1 billion, denoting a significant episode in the latest revival of mergers and acquisitions in the ad tech sector.
A news release containing details of the transaction notes how it will consist of two tranches: a $725 million upfront payment, then $25 million in a deferred payment, financed through its existing cash resources and outside financing (more on that below).
The deal will see 35 million Outbrain shares of common stock issued to Altice, the Europe-based telco that paid a reported $305 million for Teads in 2017, with the transaction additionally consisting of $105 million of convertible preferred equity, according to the August 1 news release.
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Source:: Digiday
