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RTL tables offer for Yospace
Posted on Wednesday, 09 January 2019 14:02
RTL Group, a provider of broadcast, content and digital services, has reached an agreement to pick up UK-based video technology group Yospace for about USD 33.00 million, before cash and debt adjustments and including upfront and performance-related components.
The Luxembourg-headquartered acquiror is expecting to complete the acquisition by 1st February 2019 and will appoint three of the target’s members to its own board, with current chief executive Tim Sewell and head of technology David Springall to continue managing the day-to-day operations of the company.
RTL is hoping the addition of Yospace’s technology will further grow its global advertising technology business on streaming services.
The company has developed, what it calls, one of the most advanced technologies for server-side dynamic ad insertion to allow the replacement of existing commercials from a broadcast stream with more targeted and personalised marketing.
According to the press release, this process is expected to become the de facto standard for advertising in premium streaming environments, a sector which has taken off significantly in recent years.
Yospace is focused on the high-end side of the industry, providing video-on-demand and live video that is streamed through any internet-connected device.
The company has operations in Europe, North America and Asia, with customers including BT Sport, ITV and Seven West Media.
Bert Habets, chief executive of RTL, said: “First, we gain a competitive, fully integrated and profitable solution which is key to further grow our ad-tech business. Our goal is to continue expanding SpotX [the buyer’s top product] into a leading, independent monetisation platform for broadcasters, video on demand services and publishers.
“Secondly, this acquisition will also help build local streaming champions in the markets where we have strong families of channels.”
Founded in 1999, Yospace claims to be a veteran in the mobile applications industry, with its first product – SmartPhone Emulator – launched in April 2000.
RTL has interests in 60 television channels and 30 radio stations worldwide.
The company’s portfolio includes some of Europe’s leading broadcasters in Germany, France, the Netherlands, Belgium, Croatia and Hungary.
It produces over 12,500 hours of original programming and distributes over 20,000 hours of content worldwide through its Fremantle production arm.
RTL posted revenue of EUR 4.47 billion in the nine months to 30th September 2018, a 2.7 per cent increase on EUR 4.35 billion in the corresponding period of 2017.
Reported earnings before interest, taxes, depreciation and amortisation increased less than 1.0 per cent over the same timeframe to EUR 892.00 million (Q1-3 2017: EUR 889.00 million).
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