05.02.2021, Luxembourg/Germany, RTL Group
RTL Group today announced that it has signed a definitive agreement for the sale of SpotX to Magnite (Nasdaq: MGNI), the world’s largest independent sell-side advertising platform, based in Los Angeles. The transaction is subject to receipt of regulatory approvals and is expected to close in Q2/2021.
The purchase price consists of US-$560 million (€468 million) in cash and 14.0 million shares of Magnite stock. The agreement implies an enterprise value (100 per cent) for SpotX of US-$1.17 billion (€977 million), based on the closing price of Magnite stock as of 4 February 2021. RTL Group’s shareholders will benefit from the cash proceeds in line with the stated dividend policy. RTL Group acquired a 65 per cent majority shareholding in SpotX for €107 million in 2014, and took full ownership of SpotX in 2017, acquiring the remaining shareholding for €123 million.
Thomas Rabe continues: “Advertising technology remains a strategic priority for RTL Group. To successfully transform our business, two factors are particularly important. One is higher reach, in both linear and non-linear TV. The second is better monetisation of our reach, through targeting and personalisation – and this requires state-of-the-art advertising technology and data management. With our European ad-tech companies Smartclip and Yospace, we have made significant progress in building an open European ad-tech platform and in tapping into the high-growth market of addressable TV advertising.” In Germany alone, the market for addressable TV advertising is expected to grow to more than €500 million by 2025.
Smartclip, part of Mediengruppe RTL Deutschland, is Europe’s leading provider for digital video and TV advertising solutions. The UK-based video technology company Yospace, acquired in 2019 by RTL Group, has developed one of the most advanced technologies for Server-Side Dynamic Ad Insertion (SSDAI) which allows the replacement of existing commercials from a broadcast stream with more targeted, personalised advertising.
J.P. Morgan Securities LLC acted as financial advisor and Davis Polk & Wardwell LLP as legal counsel on the transaction.