Mobile ad-tech firm InMobi bought Los Angeles-based mobile video ad startup AerServ for $90 million in a cash-and-stock deal, making it its biggest acquisition so far.
The acquisition will “enhance monetization” for publishers globally and will solidify InMobi's leadership position in the mobile video advertising industry, the company said in a statement. “It will further enhance the InMobi Exchange, a premium mobile programmatic platform.”
Programmatic advertising is automated buying and selling of media. Two-thirds of the world's digital display advertising, according to a report by Zenith Media, will be traded programmatically by 2019. It's expected to grow from $57.5 billion to $84.9 billion in the next two years.
With the investment, InMobi's video and programmatic business will account for 35 percent of its revenue. “This acquisition fits in perfectly with our global strategy to bring next generation platforms for premium publishers,” Naveen Tewari, founder and chief executive officer at InMobi, said.
“We are two profitable companies combining forces to cement our leadership position in mobile video advertising, and our integrated prowess in this space will help us scale our business in new directions globally,” he added.
Founded in 2007, the Bengaluru-based ad discovery platform said in April last year that it reported an operating profit for the year ended March. The company, which last raised $200 million in 2011 from SoftBank Group Corp, competes with giants like Facebook and Google in the mobile internet ad spending market.
Also Read: InMobi Ready For Bolder Bets, Plans India Expansion
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