GCP & PSP Capital acquire Beachfront Media
What: Growth Catalyst Partners and PSP Capital have acquired a majority stake in Beachfront Media, a mobile video monetization company. No financial terms were disclosed.
Why it matters: With advertising becoming increasingly more automated, GCP and PSP are bullish on the long-term upside of the global advertising supply chain requiring a major player like Beachfront that is independent of major media companies.
Beachfront Media, an independent programmatic mobile video advertising platform, announced that Growth Catalyst Partners (GCP), a mid-market private equity firm, and PSP Capital, a private investment firm founded by Penny Pritzker, have acquired a majority stake in the mobile video monetization company.
Beachfront Media sees billions of video ad requests a day worldwide, currently — across mobile, Connected TVs, and desktop. The company has enjoyed more than ten years of profitable growth as it’s introduced software products for digital publishers and advertisers to transact expeditiously across platforms, at scale. Beachfront’s products have helped shape what has come to be known as programmatic advertising.
With advertising becoming increasingly more automated, GCP and PSP are bullish on the long-term upside of the global advertising supply chain requiring a major player like Beachfront that is independent of major media companies. GCP and PSP will provide Beachfront with substantial resources to expand its capabilities and continue to ensure ad-supported video businesses can thrive across platforms.
Beachfront Media also announced today the appointment of ad tech veterans Bill Jennings as CEO and Rich O’Connor as CFO, who previously teamed up in the same roles at ad targeting company PageScience (acquired by Accent Health in 2016).
“We view Beachfront Media as a terrific company with a strong record of growth and execution and an incredibly innovative engine in the global economy’s migration to digital,” said Penny Pritzker, PSP’s founder and the former U.S. Secretary of Commerce. “The future of content consumption is increasingly mobile, social and arrayed across a diverse set of screens of all shapes and sizes. Beachfront’s platform-agnostic business model and world class management team will play a pivotal role in the dynamic and fast-changing media industry landscape for years to come.”
“Beachfront has made tremendous progress over the past ten years and we are in a perfect position to bring on world class partners to expand our resources, accelerate our development plan and expand our client base,” said Beachfront Media co-founder Frank Sinton, who will continue his responsibilities as President. He and his co-founder Lisa Connell will remain owners in the business.
“Bill’s and Rich’s direct experience and track record, combined with Beachfront’s team and technology, is a recipe for massive growth,” said Scott Peters, Managing Partner of GCP. “We’re excited to make the announcement official and leverage our relationships to further accelerate Beachfront’s growth.”
“Beachfront is ideally positioned to benefit from the extraordinary shift of audiences to mobile and OTT platforms,” added Jennings. “Mobile video ad spending is projected to grow from $11 billion this year to over $23 billion by 2020. Beachfront is in a perfect position.”
Troy Noard and Peter Berghoff will co-lead the investment for PSP and Jim TenBroek, Scott Peters and James O’Callaghan will lead it for GCP. The transaction was proprietarily sourced. Dickinson Wright LLP served as legal counsel to Growth Catalyst Partners. Katten Muchin Rosenman LLP represented PSP Capital, and Greenberg Traurig LLP acted as legal counsel to Beachfront Media.