Rubicon Project Acquires Chango, Entering Intent Marketing Space
What: Rubicon Project, a global technology company leading the automation of advertising, is about to acquire privately held Chango Inc., which specializes in intent marketing technology.
Why it matters: The acquisition of Canada’s “Fastest-Growing Technology Company” will accelerate buyer business by more than one year, expand future offerings to include keyword, contextual targeting, retargeting, CPC, CPA.
Rubicon Project, a global technology company in the advertising automation sector, has announced that it has reached an agreement to acquire privately held Chango Inc., which specializes in intent marketing technology.
The acquisition will allow Rubicon Project to expand its premium advertising marketplace with intent marketing technology that includes access to keyword, contextual targeting and retargeting budgets. In addition, the company will bring access to an additional US $35 billion of intent marketing spend to the Rubicon Project marketplace. Chango Inc. will also strengthens Rubicon Project’s direct order automation technology and rapidly expands its Buyer Cloud initiatives, specifically through the advancement of its Orders (Guaranteed Orders and Non-Guaranteed Orders) platform, and will increase direct integrations with premium brands and agencies that constitute a large base of Chango’s current customers, including more than 60 of the Fortune 500 advertisers.
Following this deal, Chango’s technology will be integrated into the Rubicon Project marketplace providing the platform’s entire base of premium buyers and sellers access to intent marketing capabilities.
Chango’s technology takes basic keyword search data and delivers ads to consumers based on both the initial search, plus the contextual information from the content on a website or application’s page. The end result for marketers is a sophisticated integration of search keyword and premium contextual targeting capabilities. The acquisition will also enable Rubicon Project to expand its price offerings in the future, evolving from a purely CPM (cost per thousand impressions) model to incorporate CPC (cost per click) and CPA (cost per acquisition) offerings currently under development by Chango.
Chango’s technology will be integrated into the Rubicon Project marketplace providing the platform’s entire base of premium buyers and sellers access to intent marketing capabilities.
Chango is Canada’s fastest-growing technology company, as recognized in 2014 by Deloitte’s Technology Fast 50 for Canada. The aggregate consideration will be approximately $122 Million (including contingent consideration), primarily in stock.
The transaction, which is expected to close in the second calendar quarter of 2015, is structured as an Arrangement under the Business Corporations Act (Ontario) and as such is subject to approval by not less than two-thirds of the holders of each class of shares in the capital of Chango, voting separately, and a final order approving the Arrangement, including the fairness of its terms and conditions, by the Ontario Superior Court of Justice (Commercial List), as well as other customary closing conditions. Chango shareholders owing enough shares to meet the shareholder approval requirements have agreed to vote in favor of the Arrangement.
“Chango’s technology brings keyword, contextual targeting and retargeting to premium display, mobile and video advertising. This will enable us to bring intent marketing budgets to an independent, open marketplace that serves premium buyers and sellers at scale for the first time,” commented Frank Addante, CEO, Founder & Chief Product Architect, Rubicon Project.
"Joining the Rubicon Project team will enable us to collectively provide buyers and sellers with a more complete way of buying and selling premium advertising. This deal will enable us to leverage Rubicon Project's massive reach of sellers, buyers and consumers to accelerate our combined market share and bring intent marketing to premium display, mobile and video advertising at an even greater scale," commented Chris Sukornyk , CEO & Founder of Chango.
Join us at the HISPANIC SPORTS MARKETING FORUM.. The first day of #Portada16 (Sept. 14, 2016 in NYC) will be all about Sports Marketing and insights and best practices on how best to use sports content to connect with the exploding Hispanic demographic!