Akamai Technologies and acerno have signed a definitive agreement for Akamai to acquire the New York-based ad network in a merger transaction. The transaction, which is subject to customary closing conditions, including the approval of acerno’s stockholders, is anticipated to close later this quarter.
The acquisition of acerno, a unique online co-operative of shopping and purchase data for enabling more relevant online advertising, is expected to greatly enhance Akamai’s advertising decision solutions. These new Akamai solutions will enable online advertising businesses to boost the performance of their online marketing investments by driving smarter advertising decisions based on relevant audience segments.
“Akamai’s new advertising decision solutions are a critical advancement in our product portfolio, designed to stimulate the economic model of online advertising by bringing greater simplicity and effectiveness to both ad buyers and sellers,” said Paul Sagan, President and CEO of Akamai.
Mike Afergan, CTO and Senior Vice President of Advertising Decision Solutions, Akamai, added, “We plan to leverage and grow acerno’s unique industry co-operative to enhance our new solution line. Our combined capabilities with acerno should benefit the eco-system of ad networks, online publishers and Internet advertisers by providing them with real-time, actionable data to serve more relevant marketing messages. Our advertising decision solutions have already been adopted by several key stakeholders in the online advertising industry, resulting in higher revenues and better results.”
Akamai’s advertising decision solutions are designed to help buyers and sellers of online advertising create attractive audience segments with the necessary scale to achieve better results from campaigns and investments. Acerno’s technology will complement the ability of Akamai’s advertising decision solutions to seamlessly incorporate real-time anonymous Web browsing information with anonymous online purchasing data from advertisers’ websites to present the most relevant ad. In addition, Akamai’s advertising decision solutions can be enabled without costly and time consuming implementation, leading to faster time to market and increased ad revenue.
As a result, publishers will be able provide advertisers with better access to relevant consumers, strengthening the relationship with those advertisers and driving increased advertising revenue. In addition, advertisers will benefit by seeing greater return on investment and improved ad campaign performance, while cutting waste from their ad budgets by reaching their intended audience at the right time. Finally, consumers, often faced with irrelevant online advertising clutter, will enjoy greater advertising relevance and continued growth in the amount of content that is available for free because it is supported by advertising.
Akamai already powers the online efforts of many of the Internet’s largest publishers and ad networks as well as hundreds of leading consumer brands. Akamai’s advertising decision solutions will build on the company’s unique and trusted position in the online industry.
As members of the Network Advertising Initiative (NAI), Akamai and acerno are committed to maintaining both user privacy and customer confidentiality. All of Akamai’s advertising decision solutions as well as acerno’s services rely solely on anonymous and non-personally identifiable end user information.
Under terms of the agreement, Akamai will acquire all of the outstanding equity of a holding company that owns acerno in exchange for approximately $95 million in cash, subject to certain closing adjustments. The merger transaction is expected to be accounted for by Akamai under the purchase method of accounting.