French telecom giant Altice announced today that it will acquire video adtech startupTeads in a deal worth $308 million.
“We are excited to start this new phase of Teads and become part of the internationally renowned Altice team,” said Pierre Chappaz, founder and executive chairman of Teads, in a statement. “Since our inception we have strived to offer our clients superior advertising solutions based on measurable performance and technological innovation.
Altice is a telecom company based in the Netherlands and founded by entrepreneur Patrick Drahi, and it provides a range of telecom and media services, though it is perhaps best known as the owner of SFR, one of France’s largest internet and wireless providers.
Teads was founded in 2011 and has built a reputation for its outstream video advertising product and its video advertising marketplace. The company makes the video ads that open in the middle of web content as you scroll down through a page.
Since its launch, the company has raised $55 million in venture capital and another $72 million in debt equity. This includes $47 million in debt Teads raised last year to use for acquisitions to expand into new products and markets.
According to terms of the deal announced today, Altice said it was valuing Teads at $308 million on a “cash and debt free basis.” Altice said it will pay 75 percent of the purchase price at the close of the deal, with the remaining 25 percent subject to earnout clauses that were not disclosed.
Though Teads was founded by a group of French entrepreneurs, the company eventually moved its headquarters from Paris to New York City. As of last September, the company said it had been profitable for several years and had 450 employees in 30 offices across 19 countries. In the press release today, Teads reported that it experienced “44 percent organic revenue growth year over year” in 2016, bringing it to about $200 million in annual revenue.
The companies said the deal is expected to close by the middle of this year.