WPP is to invest $25 million in publisher ad server platform AppNexus.
AppNexus has net revenues that are above $100 million and is currently valued at $1.2 billion. The company employs nearly 600 people and is based in New York with 10 offices around the world. It was founded in 2007. AppNexus’ platform allows real time buying and selling of digital advertising for marketers, publishers and content providers and media investment management companies, including Xaxis and its parent GroupM, the WPP-owned media investment management company that oversees $105 billion in client billings, according to RECMA. AppNexus currently delivers more than 30 billion ad impressions per day and forecasts that annual spending across its platform will exceed $2 billion in 2014.
Xaxis is contributing its “Xaxis For Publishers” (XFP) business to AppNexus (formerly Open Adstream). The technology was one of several acquired by WPP as part of the 24/7 Real Media acquisition and is the second largest publisher ad server platform in the world. The staff of XFP will join AppNexus, where they will add even greater value to AppNexus’ strategy. This deal enables Xaxis to focus development resources on its core data technology and media products, while more closely aligning with a strong, independent ad serving partner. Xaxis will continue to develop its own robust proprietary platform including its Turbine DMP, analytics suite, and reporting and optimization technology.
The transaction expected to close by year end.
UK, London and USA, New York, NY