(MENAFN- Trend News Agency ) A month after completing a Nasdaq listing via a merger with a SPAC, web recommendations company Taboola is starting to make use of the money that it raised, Trend reports with reference to Globes .
On Friday, the company announced that would buy advertising solutions company Connexity from Symphony Technology Group for approximately $800 million in a cash and shares deal. Taboola says it will finance the transaction with approximately $260 million from cash on hand, $300 million from committed debt financing, and approximately $240 million through the issuance of ordinary shares to the seller.
Connexity is one of the largest independent e-Commerce media platforms in the open web. According to Taboola's announcement, it serves over 1,600 direct merchants, and 6,000 publishers. After the acquisition, it will become Taboola's e-commerce arm. The company has 200 employees and is based in Los Angeles. Among its customers are Walmart, Wayfair, Skechers, Macy's, eBay and Otto.
In 2019, Connexity had revenue of $158 million, $63 million ex-TAC gross profit, and $28 million adjusted EBITDA. This grew to $176 million revenue, $78 million ex-TAC gross profit, and $38 million adjusted EBITDA in 2020.
This is Taboola's fifth acquisition, and it brings its workforce to 1,600. It will bring Taboola's annual revenue to over $500 million.
"We're so excited to welcome the Connexity team to our Taboola family, today is a big day," said Taboola founder and CEO Adam Singolda. "The rise of social commerce proves the value of commerce alongside content, and with Connexity, Taboola is primed to bring this value to the open web." "Today, our vision of helping brands easily connect with customers and helping publishers grow gets supercharged 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 of our customer sets."
Taboola's share price closed up 14.44% on Friday, bringing the company to a market cap of $2.2 billion.
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