Programmatic advertising player AppNexus is set to be acquired by US telecommunications giant AT&T in a mega money deal.
AppNexus operates a global advertising marketplace and provides enterprise products for digital advertising – serving publishers, agencies and marketers.
Headquartered in New York City, the company has 23 offices in the US, Latin America, Europe, Asia, and Australia, along with an employee base that includes more than 400 software engineers and product managers.
AT&T announced yesterday that it had entered into a definitive agreement to acquire AppNexus, with the price tag reportedly around the $2.2 billion mark.
The deal means the end of AppNexus being labelled an independent company, with its backers up until this point including WPP and News Corp.
The acquisition will see AppNexus become a part of AT&T’s advertising and analytics division, led by CEO Brian Lesser.
“Ad tech unites real-time analytics and technology with our premium TV and video content,” Lesser said.
“So, we went out and found the strongest player in the space. AppNexus has scale of infrastructure, advanced technology and diverse talent.
“The combination of AT&T advertising and analytics and AppNexus will help deliver a world-class advertising platform that provides brands and publishers a new and innovative way to reach consumers in the marketplace today.”
AppNexus CEO Brian O’Kelley said: “Innovation is core to the heritage of both AT&T and AppNexus, and we have an exciting opportunity to chart the future course of advertising together.
“Combining AT&T’s incredible assets with our technology, we will help brands and marketers power new advertising experiences for consumers. It’s what the market is asking for, and together we’re poised to deliver it.”
The transaction, which is expected to close during the third quarter of 2018, is subject to customary closing conditions. Until the transaction closes, each company will continue to operate independently.
A&T’s move to buy AppNexus comes shortly after its acquisition of US media and entertainment conglomerate Time Warner for $115 billion.