Sintec Media acquires Operative Media to accelerate its TV and digital ad management prowess
Digital ad management company SintecMedia has swept in to acquire Operative Media with the transaction (reportedly to be worth $200m) creating the largest SaaS-based offering in the addressable TV sector of the media industry.
SintecMdia acquires Operative is reportedly worth $200m
According to the pair, SintecMedia's acquisition, backed by investment outfit Frisco Partners, will bolster the TV and digital ad management infrastructure for media companies and publishers worldwide.
In particular, by absorbing Operative Media into its operation, SintecMedia will be able to refine its addressable TV procesess, helping it fine-tune how it help advertisers target audiences using demographic data, as well as sellers better manage their inventory .
The acquisition, which the Wall Street Journal claims sits at a fee of around $200m, is set to be finalized in the coming weeks. It grants the New York-based SintecMedia domain over the Israel-founded company’s 280 staff members, software and assets.
Amotz Yarden, chief executive of SintecMedia, said: “With Operative as a key part of our offering, SintecMedia brings TV and digital ad management together, allowing media companies to streamline advertising infrastructure, increase profitability and drive the long term strategic control of their business.”
Lorne Brown, current chief executive and founder of Operative, soon to move into the role of President at SintecMedia, added: “SintecMedia’s acquisition of Operative is the best possible outcome for our clients and for all media companies working to maximize profitability as TV and digital channels start to intertwine.”
GCA Advisors, LLC acted as exclusive financial advisor and Dentons US LLP, the world’s largest law firm, acted as legal advisor to Operative. Morris Manning and Martin, LLP acted as legal advisor to Francisco Partners and SintecMedia. The acquisition is subject to customary closing conditions including customary regulatory review.
This year, according to eMarketer, US digital advertising spending will be $72.1bn, marking the first year that the digital advertising market matches television, with the global market following similar patterns in the near term.
SintecMedia was also founded in 2000, and now boasts an estimated 800 employees, and claims to annually processes $33bn in ad money for some of the world’s most prominent brands including NBCUniversal and ABC. Meanwhile Operative retains more digital-focused clients including BuzzFeed and Vice Media.
The combined company will reportedly have 14 offices and 1,300 staff.