AppNexus to Acquire Open AdStream® Ad Serving Platform from Xaxis; WPP Will Take Equity Stake in AppNexus with $25 Million Investment
Deal Enhances AppNexus' Position as Industry's Largest Independent Ad Serving Platform; Strengthens Xaxis' Position as Leader in Programmatic Media Products
NEW YORK/PRNewswire/ -- WPP, Xaxis and AppNexus announced today a strategic transaction that will augment AppNexus' position as the industry's largest independent ad technology company. Under the terms of the agreement, AppNexus will acquire Xaxis' premium ad-serving technology, Open AdStream® (OAS), now known as Xaxis For Publishers. In addition, WPP will invest $25 million in AppNexus, adding to the $85 million in funding the company recently raised at a valuation of $1.2 billion.
As a technology company independent of any media business, AppNexus is uniquely positioned to offer both buyers and sellers solutions to achieve their online advertising goals. The company will now work to align the AppNexus and OAS? technology stacks to create the most innovative offering in the industry to respective clients and the industry at large.
This deal also strengthens the position of Xaxis as the global leader in programmatic audience products, including those such as Xaxis TV and Xaxis Prime, which enhance the digital media experience for consumers and deliver higher ROI for advertisers. The divestiture allows Xaxis to focus software development on its own robust platform including its Turbine DMP, analytics suite, and cross-channel optimization technology, all while continuing to have direct access to high-quality publishers.
"Our clients want world-class solutions from independent ad technology companies," said Sir Martin Sorrell, CEO of WPP. "We're delighted to deepen our partnership with AppNexus, which has proven itself as a clear leader in ad tech and a company with the scale and ingenuity to continue to transform our industry."
"Publishers want a technology partner they can trust," said Brian O'Kelley, CEO of AppNexus. "Open AdStream has been one of the most effective and trusted ad serving platforms in the world for years. We're going to make it #1 in programmatic."
"Xaxis is committed to building and partnering to provide world-class ad technology and solutions for our clients," said Brian Lesser, CEO of Xaxis. "This allows both companies to double down on what we do best. We're focusing our technology development on data management, decisioning, and new products. Open AdStream is in great hands as a part of AppNexus' powerful independent tech stack."
The transaction is subject to regulatory approval and customary closing conditions, and is expected to close by year end.
About AppNexus
AppNexus is a technology company that provides trading solutions and powers marketplaces for Internet advertising. Its open, unified, and powerful programmatic platform empowers customers to more effectively buy and sell media, allowing them to innovate, differentiate, and transform their businesses. As the world's largest independent ad tech company, AppNexus is led by the pioneers of the web's original ad exchanges. Headquartered in New York City with ten global offices, AppNexus employs hundreds of the brightest minds in advertising and technology who believe that advertising powers the Internet. For more information, visit www.AppNexus.com.
About WPP
WPP is the world's largest communications services group with billings of US$72.3 billion and revenues of US$17.3 billion. Through its operating companies, the Group provides a comprehensive range of advertising and marketing services including advertising & media investment management; data investment management; public relations & public affairs; branding & identity; healthcare communications; direct, digital, promotion & relationship marketing; and specialist communications, including direct, digital and interactive. The company employs nearly 175,000 people (including associates) in over 3,000 offices across 110 countries. For more information, visit www.wpp.com.
About Xaxis
Xaxis is a global digital media platform that programmatically connects advertisers and publishers to audiences across all addressable channels. Xaxis combines proprietary technology, unique data assets and exclusive media relationships with the brightest team of audience analysts, data scientists and software engineers. Advertisers working with Xaxis achieve higher ROI from digital marketing campaigns. Publishers deliver relevant content and advertising to new and valuable audiences. Xaxis works with over 2,700 clients across 33 markets in North America, Europe, Asia Pacific and Latin America. For more information, visit www.xaxis.com.
SOURCE AppNexus; Xaxis
CONTACT: Jenny Mulholland, AppNexus, 732 245 0021, jmulholland@appnexus.com; Katy Saeger, Harmonica for Xaxis, katy@harmonica.co, Office 310-935-3883, Cell 310-597-2337; Peter Epstein, Harmonica for Xaxis, peter@harmonica.co, 323-251-3567; Feona McEwan, WPP, + 44(0) 207 408 2204; Kevin McCormack, WPP, +1 (212) 632 2239
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http://www.appnexus.com