The deal was made in cash and debt free. It will depend on Teads meeting its revenue targets for 2017 where 75% of the deal will be due at closing and the other 25% will be made in early 2018. The acquisition is expected to close by mid-year.
Teads creates native video advertising solutions and has partnerships with 100 publishers globally. It operates two R&D centres in Montpellier and New York and said in a statement that its revenue grew by 44% last year to €187.7 million.
Altice said the acquisition was a “critical component” for its global advertising strategy.
“Teads, a powerful business in itself, with major presence in Altice footprint notably in the U.S. and France, will enable us to offer a truly unique value proposition to brands and agencies on the one hand and the media industry, programmers and distributors on the other,” said Altice CEO Michel Combes.
Teads CEO Bertrand Quesada and executive chairman Pierre Chappaz will continue to run the company with Chappaz joining Altice’s management board overseeing advertising.
“As part of Altice, we will be able to offer even more tailored, data-driven solutions and take our value proposition from the digital world to a multiscreen platform, which includes TV, digital, mobile and tablets. It is this differentiated offering which will allow Altice and Teads to uniquely prosper in the global advertising market,” said Chappaz.