Taboola buys US ad solutions company Connexity for $800 million

A month after completing the Nasdaq listing via a merger with SPAC, web recommendations firm Taboola (Nasdaq: TBLA) has begun to tap into the funds it raised. The company announced Friday that it will buy advertising solutions company Connexity from Symphony Technology Group for approximately $800 million in a cash and stock transaction. Tabbouleh says it will finance the deal with about $260 million in available cash, $300 million in committed debt financing, and about $240 million through the issue of common stock to the seller. Related Articles Taboola reports strong data for the first quarter before the SPAC merger. Outbrain Drops Rating At Nasdaq IPO, Connexity is one of the largest independent e-commerce media platforms in the open web. According to Taboola’s announcement, it serves more than 1,600 direct merchants and 6,000 publishers. After the acquisition, it will become the e-commerce arm of Taboola. The company has 200 employees and is headquartered in Los Angeles. Its clients include Walmart, Wayfair, Skechers, Macy’s, eBay and Otto. In 2019, Connexity had revenue of $158 million, previous gross profit of $63 million, and $28 million adjusted EBITDA. This has grown to $176 million, $78 million in total TAC earnings, and $38 million adjusted EBITDA in 2020. This is Taboola’s fifth acquisition, bringing its workforce to 1,600. It will make Taboola’s annual revenue over 500 Million dollars. “We are very excited to welcome the Connexity team to the Taboola family, today is a great day,” said Adam Sengolda, Founder and CEO of Taboola. “The rise of social commerce is proving the value of commerce alongside content, and with Connexity, Taboola is poised to bring that value to the open web.” “Today, our vision to help brands connect easily with customers and help publishers grow grows with Taboola,” said Bill Glass, CEO of Connexity. “This is a shared vision for both companies, which makes this deal a natural fit and a huge win for both our client groups.” Taboola’s share price closed 14.44% higher on Friday, bringing the company’s capital to $2.2 billion. Published by Globes, Israel business news – en.globes.co.il – on 25 July 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021