Boston, MA 09/24/2014 (wallstreetpr) – Millennial Media, Inc. (NYSE:MM) push to solidify it’s position as a leading mobile advertising company has received a major boost after reaching an agreement for the acquisition of Nexage. The deal is thought to be worth $107.5 million subject to the fulfillment of certain adjustments.
Terms of the Agreement
Nexage specializes in providing real-time bidding technology that is normally used in automating, buying and selling of mobile advertising. Nexage shareholders will receive $2.21 worth of millennial share for every Nexage share, upon closure of the merger. Millennial Media, Inc.(NYSE:MM) acquisition push comes at a time when the entire industry is trying to consolidate itself as focus shifts to mobile ad business.
Twitter Inc. (NYSE:TWTR) started the wave of acquisitions in the ad segments after acquiring MoPub and TapCommerce. Yahoo! Inc. (NASDAQ:YHOO) has also been busy in the space having acquired Flurry with Opera, on the other hand, acquiring ad Colony. Millennial Media CEO, Michael Barrett, believes the acquisition of Nexage will help the company in its push to provide a wide range of services, to mobile advertisers, as well as app publishers.
Declining Revenue
Barrett is quoted as saying that the company has been looking for various avenues to be used for venturing into the SSP side of the business. Nexage is believed to have passed the threshold as it has accumulated its own relationship with mobile app developers thought to be reaching highs of 60,000. It has not been an impressive year for Millennial Media, Inc. (NYSE:MM) this year, having reported a drop of revenue in the first quarter that came in at $72.6 million shy of the $75.52 million that was initially projected.
The acquisition of Nexage highlights Millennial Media, Inc. (NYSE:MM)’s vision to increase the yield for publishers mostly through expertise and scale. The acquisition is expected to complement Millennial Media demand from advertisers and agencies.
