The deal will see AppNexus acquire the Open AdStream ad serving platform Xaxis, the programmatic arm of WPP. WPP will also increase its investment in AppNexus by $25 million.
According to the Wall Street Journal, this investment will increase WPP’s stake in AppNexus to 15%. Other companies that have a stake in AppNexus include Microsoft. The company had recently raised $85 million in funding at a valuation of $1.2 billion.
With the sale of Open AdStream, Xaxis can now focus its efforts on focus software development on its own platform including its Turbine DMP, analytics suite, and cross-channel optimization technology.. Xaxis has recently launched new programmatic products like Xaxis TV and Xaxis Prime.
“Xaxis is committed to building and partnering to provide world-class ad technology and solutions for our clients,” said Brian Lesser, CEO of Xaxis. “This allows both companies to double down on what we do best. We’re focusing our technology development on data management, decisioning, and new products. Open AdStream is in great hands as a part of AppNexus’ powerful independent tech stack.”
“Our clients want world-class solutions from independent ad technology companies,” said Sir Martin Sorrell, CEO of WPP. “We’re delighted to deepen our partnership with AppNexus, which has proven itself as a clear leader in ad tech and a company with the scale and ingenuity to continue to transform our industry.”
The transaction is subject to regulatory approval and customary closing conditions, and is expected to close by year end.