Cadent, LLC Completes Acquisition of AdTheorent Holding Company, Inc.
AdTheorent Holding Company, a leader in machine learning for programmatic advertising, announced that it has been acquired by Cadent, , a provider of converged TV advertising solutions. The acquisition was completed for $3.21 per share in an all-cash transaction, valuing AdTheorent at approximately $324 million. Following the acquisition, AdTheorent's common stock has been delisted from the Nasdaq Stock Market. Advisors for the transaction included Canaccord Genuity and McDermott Will & Emery LLP for AdTheorent, and Moelis & Company and Baker Botts LLP for Cadent.
AdTheorent, headquartered in New York, offers advanced machine learning-powered media buying platforms and has been recognized with numerous industry awards. Cadent is known for its Aperture converged TV platform which simplifies cross-screen advertising. Novacap, a major North American private equity firm, supports Cadent's growth strategies.
- Acquisition valued at approximately $324 million.
- AdTheorent's advanced machine learning technology recognized with multiple awards.
- Cadent's acquisition supported by Novacap, a reputable private equity firm.
- AdTheorent's common stock delisted from Nasdaq, no longer trading publicly.
Insights
This acquisition is significant primarily because it involves an all-cash transaction valuing AdTheorent at approximately
For investors, the cessation of AdTheorent's trading on Nasdaq implies a shift from public to private ownership. This transition may benefit stakeholders due to potentially enhanced operational efficiencies under private equity ownership, which often focuses on long-term value creation over short-term market pressures. However, it also means public investors lose direct exposure to AdTheorent's performance and potential future upside.
In the short term, investors holding AdTheorent shares will receive cash, providing immediate liquidity. For Novacap, this acquisition extends their portfolio in the TMT (Technology, Media and Telecommunications) sector, leveraging AdTheorent's machine learning capabilities to enhance Cadent's advertising solutions. Long-term, the success of this acquisition will hinge on integrating AdTheorent's technology and human resources effectively into Cadent's existing operations.
Industry-specific terms like an 'all-cash transaction' mean that the buyer pays the full purchase price in cash rather than using stock or other means. Such deals often indicate strong financial health and liquidity of the acquiring company.
AdTheorent's advanced machine learning technology is the cornerstone of this acquisition. For Cadent, integrating this technology can significantly enhance its capabilities in predictive targeting and audience segmentation, potentially improving the effectiveness and efficiency of advertising campaigns.
Machine learning allows for the analysis of vast amounts of data to identify patterns and predict future behaviors. In advertising, this translates to more accurate targeting of consumers, higher engagement rates and better ROI (Return on Investment) for clients. The acquisition positions Cadent to offer more sophisticated, data-driven advertising solutions, aligning with the industry's shift towards intelligent, automated advertising.
For retail investors, it's essential to understand that the integration of such technology can be complex and time-consuming. While the potential benefits are substantial, including improved ad performance and client retention, the risks include possible integration challenges and the need for continued investment in AI and machine learning development.
This acquisition reflects broader trends in the advertising industry, where data-driven, programmatic advertising is becoming increasingly important. Cadent's move to acquire AdTheorent underscores a strategic initiative to bolster its technological capabilities and remain competitive.
AdTheorent’s recognition through numerous awards for its AdTech platform and innovation highlights its strong reputation and technological leadership in the industry. This reputation can be a significant asset for Cadent, potentially attracting new clients and partnerships.
For investors, the consolidation in the AdTech space suggests that companies are looking to enhance their service offerings through strategic acquisitions. This can lead to more robust platforms, but also increased competition among few large players. Understanding these industry dynamics can help investors make more informed decisions regarding their portfolio allocations in the tech and advertising sectors.
NEW YORK, June 21, 2024 (GLOBE NEWSWIRE) -- AdTheorent Holding Company, Inc. (“AdTheorent” or the “Company”) (Nasdaq: ADTH), a machine learning pioneer delivering measurable value for programmatic advertisers, today announced that Cadent, LLC, a leading provider of platform-based converged TV advertising solutions and a portfolio company of Novacap, one of North America’s established private equity firms, completed its acquisition of AdTheorent for
With the completion of the transaction, AdTheorent’s common stock has ceased trading and is no longer listed on the Nasdaq Stock Market and will not trade in any other public market.
Advisors:
Canaccord Genuity acted as financial advisor and McDermott Will & Emery LLP acted as legal counsel to AdTheorent in connection with the transaction. Moelis & Company LLC acted as lead financial advisor, and Baker Botts LLP provided legal counsel, to Cadent.
About AdTheorent:
AdTheorent uses advanced machine learning technology to deliver impactful advertising campaigns for marketers. AdTheorent’s advanced machine learning-powered media buying platform powers its predictive targeting, predictive audiences audience extension solutions and in-house creative capability, Studio A\T. Focused on the predictive value of machine learning models, AdTheorent’s product suite and flexible transaction models allow advertisers to identify the most qualified potential consumers coupled with the optimal creative experience to deliver superior results, measured by each advertiser’s real-world business goals. AdTheorent is headquartered in New York, with fourteen locations across the United States and Canada.
AdTheorent is consistently recognized with numerous technology, product, growth and workplace awards. AdTheorent was named “Best AdTech Platform” in the 2024 Digiday Media Awards and was honored with an AI Breakthrough Award and “Most Innovative Product” (B.I.G. Innovation Awards) for six consecutive years. Additionally, AdTheorent is the only seven-time recipient of Frost & Sullivan’s “Digital Advertising Leadership Award.” In September 2023, evidencing its continued prioritization of its team, AdTheorent was named a Crain’s Top 100 Best Place to Work in NYC for the tenth consecutive year. AdTheorent ranked tenth in the Large Employer Category and 26th Overall in 2023. For more information, visit adtheorent.com.
About Cadent:
Cadent connects the TV advertising ecosystem. Cadent helps advertisers and publishers identify and understand audiences, activate campaigns, and measure what matters – across any TV content or device. Aperture, the company’s converged TV platform, simplifies cross-screen advertising through a streamlined workflow that brings together identity, data, and inventory with hundreds of integrated partners. For more information, visit cadent.tv.
About Novacap:
Founded in 1981, Novacap is a leading North American private equity firm with over C
For more information, please visit www.novacap.ca.
Investor Contact:
David DeStefano, ICR
AdTheorentIR@icrinc.com
(203) 682-8383
Press Contact:
Melanie Berger, AdTheorent
melanie@adtheorent.com
(850) 567-0082
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