Adaptive Medias, Inc., a video technology company, has carried out a Letter of Intent (LOI) to merge with AdSupply, Inc., a digital advertising technology company based in Los Angeles. Adaptive Medias will pay $8 million in cash and issue 53% of the company’s stock to AdSupply in consideration for the merger.
The merge will give AdSupply access to Adaptive Medias’ Media Graph, a digital video player designed for mobile, while Adaptive Media will get AdSupply’s new BlockIQ software, which works to detect users running ad blockers and provides publishers and advertisers with ways to bypass them.
The combined entity, which will be consolidated into Adaptive Medias, predicts that it will generate more than $30 million in revenues and $2.5 million in earnings.
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“The value of the technology and product synergies between the two companies is extremely strong,” said Justin Bunnell, Chief Executive Officer of AdSupply, Inc., in a statement. “We intend to dominate the superior ad block bypass category that we have created. With the Internet rapidly migrating to HTML5 video, especially on mobile devices, we must be well positioned in this space and Media Graph is the next generation, state-of-the-art platform that would otherwise take us two or more years to build on our own.”
