Telenor Group entered into an agreement to acquire approximately 95 percent of Tapad, a US-based marketing technology firm. The purchase price is USD 360 million, on a debt and cash-free 100 percent basis. Telenor expects the acquisition of Tapad to bring it a solid position within advertising and marketing technology and significantly strengthen its data analytics capabilities.
The US-based startup was established in 2010 by Norwegian entrepreneur Are Traasdahl, the company's CEO. The company delivers unified cross-device marketing technology products that give publishers, marketers and technology providers a holistic view of consumers across devices and screens, including smartphones, tablets, home computers and smart TVs. Traasdahl and his Norwegian co-founder, Dag Liodden, have together retained a 5 percent stake in Tapad.
Within its media business, Tapad currently has more than 160 of the top US brands among its customers and benefits from over 50 data technology licensing partnerships. In 2015, the company is expected to report revenues of USD 57 million, growing at 70 percent compared to 2014, and an EBITDA loss of USD 12 million. In 2016, revenues are estimated to increase to around USD 90 million. Telenor expects Tapad to reach EBITDA break-even in 2017. Tapad has approximately 160 employees, with offices in 13 key cities in the U.S. and Europe.
Tapad will be operated as a stand-alone company. Traasdahl, the current CEO of Tapad, and Dag Liodden, co-founder and CTO, will maintain their positions.
The closing of the transaction is subject to regulatory approvals. Closing is expected in first quarter 2016.
