Back by the deep pockets of Singapore Telecommunications Limited, Amobee has bought over two companies that will broaden and strengthen the digital advertising specialist.
The SingTel-owned company has brought under its wing Adconion both in the USA and Australia. The company is valued US$235 million. Adconion is a cross channel digital advertising agency working across display, video, email and social. It already has clients amongst the Fortune 500 companies.
The second company acquired by Amobee is Kontera which is has the technology to record and analyse data. This company has offices in USA, UK and Israel. This company was valued at around US$150 million.
While it may seem a gamble to invest more money while Amobee is still bleeding cash, Amobee and SingTel have very little choice. The changing world and developments in communication have forced SingTel and other national telephone operators to seek new fields over the last decade. SingTel has already invested locally in a cable television division and digital entertainment site. Amobee, if it is to gain more than its current 10% share of the market, needs to be ready to meet the increasing demands of the media agencies and brand owners. Advertisers are looking at real-time buying to a highly targeted audience. This requires new platforms and responses measured in nano-seconds. The two company acquisitions go a long way to ensure Amobee is ready to meet the demands of the ad industry.
The companies will be integrated by the end of the year and will be rebranded under Amobee. The company is now led by Chief Executive Officer, Mark Strecker.