Magnite Set To Acquire SpotX In $1.17B Deal To Create Largest Independent Video Advertising Platform - Magnite (NASDAQ:MGNI)

Magnite Inc (NASDAQ: MGNI) is acquiring global video ad serving platform SpotX from RTL Group for a $1.17 billion purchase price to become a powerful CTV and video advertising platform.
The purchase price includes $560 million in cash, 14 million shares, and debt financing from Goldman Sachs.
The transaction is estimated to close by the second quarter of 2021, subject to approvals and conditions.
“The combination of Magnite and SpotX will make this a reality by bringing together the best CTV technologies and teams at a critical time. Ad-supported CTV is just beginning to draw budgets from linear TV, and we will be well-positioned to participate in the strongest segment of industry growth for the foreseeable future,” said Magnite CEO Michael Barrett.
The acquisition will enable Magnite and SpotX to cater to the global programmers, broadcasters, platforms, and device manufacturers, like A+E Networks, Crackle Plus, The CW Network, Discovery, Disney/Hulu, Electronic Arts, Fox Corporation, fuboTV, Microsoft, Newsy, Philo TV, Pluto TV, Roku, Samsung, Sling TV, Tubi, ViacomCBS, Vizio, Vudu, WarnerMedia and Xumo.
Magnite expects $35 million in cost synergies, with the realization of over 50% of the synergies within the first year of consolidated operations.
Magnite’s preliminary results for the fourth quarter of FY20 include a 20% year-on-year revenue growth on a proforma basis to $82 million with CTV revenue growth of 53% to $15.3 million. Net income stands at $5.8 million.
Price action: MGNI shares are up 22.3% at $53.17 in the pre-market session on the last check Friday.

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