Mediaocean Acquired By Private Equity Firm Vista
What: Vista Equity Partners has acquired a majority stake in automating trafficking and billing software Company Mediaocean in a deal that values Mediaocean at about US$720 million.
Why it matters: The investment, which helps the company to continue development of products that address the convergence of digital video and TV, doesn't hinder Mediaocean's interoperability with other major video buying systems, including TubeMogul and Adap.tv.
Vista Equity Partners has acquired a majority stake in automating trafficking and billing software Company Mediaocean. The deal values Mediaocean at about US$720 million, the company confirmed. Mediaocean was the result of the 2011 merger of Mediabank and Donovan Data Systems, a deal valued at US$1.5 billion.
The investment will help the company to continue development of products that address the convergence of digital video and TV. Mediaocean's products are designed to accelerate the agency workflow and planning process. In 2013, it launched a Connect Partner program, a marketplace where agencies are charged on the percentage of spend they put through the platform.
Mediaocean is also investing in Spectra, a "broadcast exchange" of sorts for TV buyers, and recently extended that offering to include digital video via its partnership with Videology. Working with Videology doesn't hinder Mediaocean's interoperability with other major video buying systems, including TubeMogul and Adap.tv, according to the company.
"Four years ago we created Mediaocean with the goal of providing the industry with an open platform to easily integrate campaigns across all traditional and digital media,” said Michael Donovan, chairman of Mediaocean, in a statement. “When Vista approached us, we were impressed by its strategic vision."Donovan said Vista is more like an "enterprise software holding company than a classic private equity firm with nearly 200 employees – most of whom are operators, not finance professionals.”
Buyers ,actually, expect more convergence on the back end. "They don't want to just partner with one, they want to partner with several to see which is most effective for their needs," Jim Tricarico, CRO of broadcast and multichannel video programming distributor partner Cadent Network, said.Tricarico noted, for example, that MAGNA Global uses TubeMogul while WPP/Mindshare use Videology, which underscores the importance of supporting multiple video/TV planning instances. This is what Mediaocean is building toward.
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“if you can get the financial outcome of an IPO without the burden of managing a public company, what's better than that?, ” said Wise.
Mediaocean will first help with media convergence, specially TV and video to one marketplace design, similar to what the company did with digital radio with Pandora and Spotify. Secondly, with geographical expansion. As Digital is inherently global, it's much easier to expand geographically, and the copany is already implementing in both France and Germany, UK and scoping out Asia-Pacific for 2016.Third is diversifying our product, one being connection to the sell side of the market and then extending into planning. On the partnerships, the ones who really stuck out are the ones who represent supply: Pandora, Spotify, AdStruc, Videology, all the companies who aggregate supply and want to plug into Mediaocean’s demand.