Adaptive Medias, Inc., a video technology company, confirmed to MMW ahead of its formal announcement today that it has executed a Letter of Intent to merge with Los Angeles-based digital advertising technology company AdSupply, Inc.
We’re told that Adaptive Medias will pay $8 million in cash and issue stock representing approximately 53% of the Company post merger to AdSupply in consideration for the merger.
In its first full year, the combined entity expects to generate more than $30 million in revenues and $2.5 million in earnings, a provided statement outlines.
The merged company will be consolidated into Adaptive Medias with its common stock continuing to trade under the ticker symbol “ADTM.” The new combined entity plans to apply for a listing on the NASDAQ following the closing of the merger.
“The value of the technology and product synergies between the two companies is extremely strong,” says Justin Bunnell, Chief Executive Officer of AdSupply, Inc. “We intend to dominate the superior ad block bypass category that we have created. With the Internet rapidly migrating to HTML5 video, especially on mobile devices, we must be well positioned in this space and Media Graph is the next generation, state-of-the-art platform that would otherwise take us two or more years to build on our own. With AdSupply’s larger market position and customer base, this is a classic win-win deal with several powerful catalysts for accelerated growth and profitability.”
