What: Entravision is buying digital advertising company Headway. The transaction has been financed by cash on hand and is expected to close in the early second quarter, Esteban Lopez Blanco, Entravision’s Chief Strategy Officer, tells Portada. Entravision’s Pulpo Media and Headway will continue to serve clients on a stand-alone basis. Entravision’s stock was up 12% in early trading this morning in the New York Stock exchange.
Why it matters: With this acquisition Entravision, who bought Pulpo Media in 2014, substantially rounds up its suite of ad-tech services both in the U.S as well as Latin America. The company has stated that it intends to increase the share of digital revenues to 20% of total revenues. The transaction also reflects consolidation in the Latin digital marketing space.
Entravision Communications Corporation is acquiring Buenos Aires, Argentina headquartered marketing-tech firm Headway. Headway has 18 offices around the world that work and provide services including DMP (with its DataXpand unit), mobile branding and performance for app downloads (MoBrain), to programmatic trading, Mediamath representation in Spanish-speaking Latin America, and video and native advertising (Headway recently launched an exchange for Spanish-language native advertising). Bringing in Headway into the Entravision umbrella should help Entravision/Pulpo Media expand the programmatic marketing capabilities through Headway’s strong relationship with MediaMath, which combines advanced marketing software with global reach and scale. The transaction, which will be funded from the Entravision’s cash on hand, is expected to close early in the second quarter. Additional terms were not disclosed.
“This purchase will provide synergies with our more than 300 local and national sales team members in the U.S., and the Latin America region. It brings huge opportunities as digital ad spend, e-commerce, internet and smart phone penetration will continue to grow at accelerated rates for many years as compared to the U.S. market,” says Esteban Lopez Blanco, Chief Strategy Officer at Entravision.
The key strategic driver in for this transaction is in the product frontend and data backend integration opportunities which we believe will enhance both Pulpo’s and Headway’s offerings.
Both Pulpo and Headway will continue to serve their clients on a stand-alone basis. Blanco notes that “Headway and Pulpo are strong brands in their own right and provide their clients with a broad portfolio of solutions to proactively engage consumers. The two companies will continue to serve their clients on a standalone basis and each will benefit from the integration of their combined products data and inventories to the benefit of their respective advertisers, agencies and publishers. According to Entravision’s Chief Strategy Officer, Esteban Lopez Blanco, Headway provides “professionally managed services that enable agencies to advance their programmatic capabilities. Headway and Pulpo are highly complementary and each will benefit from the integration of their combined data and inventories.”
Stronger Footing in Latin America
Lopez Blanco tells Portada that, “with Pulpo and Headway we are able to provide marketers a more comprehensive footprint, reaching the entire US and Latin America marketplace. Pulpo Publishers network is ranked in the top 5 in reach as rated by comScore in Argentina, Mexico, Columbia, Chile and Peru and the addition of Headway will allow us to expand our combined reach and better serve clients of both companies.
Founded in 2010, Headway is headquartered in Buenos Aires, Argentina and has 152 employees in 18 offices principally located in North and South America. Following the closing of the transaction, Martin Kogan will continue to lead the company as Chief Executive Officer, with Agustin Echavarría Coll continuing to serve as Chief Revenue Officer.