Synacor Revs-Up Advertising Growth Engine with Acquisition of Digital Advertising Pioneer Technorati
OREANDA-NEWS. Synacor, Inc. (Nasdaq:SYNC), the trusted multiscreen technology and monetization partner for video, internet and communications providers, device manufacturers and enterprises, today announced it has agreed to acquire privately held digital advertising pioneer Technorati. Synacor expects that the transaction will be accretive to its 2016 adjusted EBITDA, and brings the potential for revenue growth.
"Advertising is an important growth engine for Synacor," said Synacor CEO Himesh Bhise. "In the past year we dramatically improved advertising monetization in line with our strategy to increase value for our customers. Combining Technorati's publisher network, SmartWrapper header bidding solution, and advertising technology with Synacor's existing portal network and monetization engine creates a large-scale Media Solutions Platform. We welcome the talented Technorati team, which shares our ethic of being a trusted partner to customers."
"For Technorati, becoming part of Synacor is a logical next step to grow our ad network and our digital advertising solution, SmartWrapper. All of us at Technorati are excited to be joining Synacor and bringing our programmatic advertising platforms to a much broader audience of customers and partners," said Technorati CEO Shani Higgins.
Advertising represented 45% of Synacor's Q3 2015 revenues and grew 17% year-over-year. Synacor delivers advertising monetization through direct sales, ad operations and data-driven yield management services, driving revenue-performance for high-quality publishers. The acquisition of Technorati is expected to:
- Broaden Synacor's scale, reach and demographics to drive additional advertising demand
- Accelerate Synacor's content and advertising syndication strategy by broadening its access to 1,000+ publishers with the tools and platform to support them
- Add a leading programmatic advertising platform for publishers to Synacor's portfolio of SaaS-based products, which includes Zimbra email, Cloud ID authentication, and advanced video solutions
- Add to Synacor an experienced team of advertising talent
Based in San Francisco, Technorati generated approximately $7 million in revenue in 2015. Technorati:
- Operates an advertising network that monetizes desktop and mobile inventory serving 1000+ publisher partners
- Provides publishers with a technology platform, Contango, that helps publishers get the highest price for their programmatic advertising impressions by creating a scalable, real-time auction across supply-side platform, exchanges and networks
- Licenses a SaaS-based technology solution, SmartWrapper, part of the Contango platform, enabling publishers to scale their header bidding strategy with a demand agnostic header bidding management and analytics tool
The Technorati acquisition is expected to close this month, and Synacor will discuss the acquisition of Technorati during its fourth-quarter and year-end conference call scheduled for March 16, 2016 at 5:00 p.m. ET. Those interested may access a webcast of the conference call via the "Presentations & Events" section of the Company's website at http://investor.synacor.com/events.cfm or by calling (877) 837-3911, with conference ID 47007081. Callers outside the U.S. may dial (253) 237-1167.