Berlin-based RNTS Media, the parent company of mobile advertising technology platform Fyber, announced today that it has agreed to acquire 100% of Inneractive Ltd., a mobile real-time bidding ad exchange powering display, native and video ads. The initial cash payout is $46 million, but the agreement provides for potential earn-out and retention payments of up to $26 million upon achievement of growth targets over the next three years, bringing the potential maximum consideration to $72 million.
Inneractive provides technologies for the buying and selling of mobile ads to approximately 630 million monthly active users in 180 countries providing technologies for the buying and selling of mobile ads.
In a release announcing the acquisition, RNTS Media said that is sees Inneractive’s product offering and technology as complementary to that of Fyber, which has 500-plus monthly active users, expanding RNTS’ programmatic capabilities beyond Fyber’s core publisher base into verticals such as entertainment, productivity, news, messaging, social networking and utilities.
RNTS’ acquisition of Inneractive comes on the heels of its purchase of San Francisco-based app monetization company Heyzap in January German ad tech firm Falk Realtime in April 2015.
Founded by Ziv Elul and Offer Yehudai in 2007, Inneractive is backed by Evergreen Venture Partners and is headquartered in Tel Aviv. It also has offices in New York, San Francisco and London.
Inneractive will continue to be run largely as an independent, but RNTS plans to create revenue synergies by monetizing Fyber’s audience through Inneractive’s platform.
The acquisition of Inneractive is expected to be completed in Q2 2016 after the satisfaction of customary closing conditions and expiration of the statutory 50-day waiting period for mergers in Israel. The initial payout will be funded from the proceeds of convertible bonds issued in July 2015, and RNTS expects to raise more capital to compete the purchase. If the purchase is not completed, RNTS agrees to pay a break fee of $8 million. As part of the deal, Ziv Elul, CEO of Inneractive, will join the RNTS executive board upon completion of the transaction.