The Canadian tech industry has become accustomed to acquisitions by larger companies in Silicon Valley, but the tables temporarily turned recently as AcuityAds has purchased 140 Proof, which provides in-app mobile targeting software, in a deal worth up to $20 million.
AcuityAds, a Toronto-based programmatic marketing company, is in growth mode. CEO Tal Hayek said this acquisition — its first —will help expand its offering, sales force and reach into the American market.
“Part of what we wanted to do after going public [in 2014], once we become profitable, is to start buying other companies,” said Hayek. “We can keep growing organically, but it will take too long.”
After seeing a demo of 140 Proof’s patented social data and in-app behaviour intelligence technology a few months ago, Hayek said his team was sold and began working on a deal.
Hayek said AcuityAds customers now have access to 140 Proof’s social intelligence data and mobile programmatic exchange products.
“The overall target is going to be integrating the 140 Proof into a self-serve offering eventually, which may take some time, but this is the long-term target,” said Hayek. “We’re also adding a lot to the 140 offering, so their sales people can start selling programmatic, which they didn’t have access to until now.”
Since it was founded in 2009, 140 Proof has delivered billions of social ad impressions to global brands that include General Motors, Kraft, ESPN and Victoria’s Secret. Hayek added that with competition heating up in the programmatic advertising space, the acquisition will help AcuityAds keep their edge.
Hayek said AcuityAds earned $1 million in revenue when it launched 2011, which has grown to just under $21 million last year, with their self-service products accounting for approximately 50%.
