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AcuityAds Completes Acquisition of 140 Proof Inc.
AcuityAds Completes Acquisition of 140 Proof Inc. AcuityAds Completes Acquisition ...
About this update from Illumin Holdings Inc.
[{"type":"text","content":"\n\n\n\nAcuityAds Completes Acquisition of 140 Proof Inc.\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nAcuityAds Completes Acquisition of 140 Proof Inc.\nCanada NewsWire\nTORONTO and SAN FRANCISCO, Sept. 1, 2016\n\n\n\nCombined company provides marketers unparalleled hypertargeting solutions that deliver greater ROI\n\n\n\nTORONTO and SAN FRANCISCO, Sept. 1, 2016 /CNW/ - AcuityAds Holdings Inc. (TSXV:AT) (\"AcuityAds\" or the \"Company\"), a technology leader that provides targeted digital media solutions enabling advertisers to connect intelligently with audiences across mobile, video, social and display, announced today that it has completed the previously announced acquisition of 140 Proof, Inc., an industry-leading social and mobile targeting company.\n\nTransaction Highlights\n\nAcuityAds has acquired all of 140 Proof's outstanding common stock in exchange for an initial cash payment of US$3.0 million, with additional performance based earn-outs (subject to the achievement of certain gross profit and contribution margin milestones) over a 3-year period to a maximum amount of  US$20.0 million.  Earn-out payments, if any, are expected to be self-funded, and this acquisition is expected to be accretive to AcuityAds' earnings, as no AcuityAds shares will be issued with respect to the closing of this transaction.\n\nAcuityAds has financed the initial cash payment through a combination of drawing down on its US$6.5 million updated line of credit (the \"Facility\") with its existing lender Silicon Valley Bank, along with a C$1.0 million advance (the \"Loan\") under an addendum to a credit agreement for a term loan that was previously announced on November 13th, 2015.\n\nAs of June 30, 2016 the pro-forma trailing 12-month revenue for the combined organization was approximately $35.0 million CDN.\n\nBusiness Opportunity\n\nAccording to eMarketer, in 2015, U.S. advertisers alone spent nearly $11 billion on social network advertising, which is projected to grow to over $19 billion by 2018. By 2020, more than seven out of 10 U.S. in...