AdTech platform, Media.net, is being acquired by a Chinese Consortium in an all-cash transaction valued at about $900 Mn.
Founded by Divyank Turakhia, Media.net, is a global advertising technology company that develops innovative products for both publishers and advertisers. By market cap, Media.net is one of the Top 5 largest AdTech companies worldwide.
The consortium was led by Zhiyong Zhang, the chairman of Beijing Miteno Communication Technology Co. Ltd. a technology, media and telecom (TMT) business listed on the GEM Board of the Shenzhen Stock Exchange.
Talking about the investment, founder and CEO Divyank Turakhia said, “Chairman Zhang is a proven TMT leader with deep connections throughout the Asia-Pacific region. Together with his team, access to China’s world-class talent and capital markets, we will radically enhance our development pipeline, and further improve our operational efficiencies to better serve our customers across the globe. Further, we look forward to launching our various products in the highly lucrative China market.”
Media.net had a revenue of $232 Mn in 2015. It currently manages more than $450 Mn of annual advertising revenue via its platform. It has 800-plus employees in key operation centres across New York, Los Angeles, Dubai, Zurich, Mumbai and Bangalore. Media.net’s US headquarters is based in New York and global headquarters in Dubai. Its clientele includes Reuters, Cosmopolitan, Marie Claire, Forbes, Elle, etc.
Post acquisition Media.net will be integrated into Beijing-based Miteno. However, Media.net will continue to operate under Divyank and its current management team and retain the business model.
A serial entrepreneur with a proven track record of performance, Div Turakhia has had several lucrative exits prior to this deal. In 2014, Endurance International Group (NASDAQ:EIGI) bought four brands that he co-founded with his brother, Bhavin Turakhia, for approximately $160 Mn.
Talking about the acquisition, lead investor Zhiyong Zhang said, “In evaluating this deal, we looked at Media.net’s smart investments over many years to build a large and comprehensive technology stack to escape these trends. Media.net has a proven track record of year-over-year growth, superior technology, and solid position to continue to grow in the future. The company’s success in the US, which is arguably the world’s most competitive ad-tech market, is impressive. We look forward to propelling Media.net’s growth in China.”
The acquisition will provide significant value by accelerating Media.net’s entry in the Chinese ad tech market. It is currently the world’s second largest with expectations of significant growth in online ad spend.