SintecMedia, a provider of TV ad management software for media companies, acquired ad-tech firm Operative Media on Tuesday in a transaction that's valued at almost $200 million, according to the companies. The acquisition combines TV and digital ad management for media companies and publishers globally, and aims to address the converging TV and digital markets.
SintecMedia provides TV ad products to maximize yield and streamline operations across direct and programmatic television advertising. Its clients include NBC Universal, CBS, ABC, AT&T, Starz, Star India, Seven Australia, and Sky.
The two companies share some large media clients in the U.S. The combined company will offer media companies the ability to streamline advertising sales, delivery, reporting, and yield management.
Operative has digital clients moving into video and TV, while SintecMedia has international clients that are lacking a digital ad management system. This creates many opportunities for organic growth in the near future.
Operative’s management team, including founder Lorne Brown, are also investors in the combined business. Brown will take the role of president and remain part of the strategic leadership team within SintecMedia. "SintecMedia's acquisition of Operative is a best case scenario for the media market, where a streamlined single technology stack can empower them for business now and in the future. As digital and TV converge, media companies will have the partner they need to profit and scale," Brown told Real-Time Daily via email.
“Operative’s customer base and digital advertising solutions are the perfect complement to our own global client roster and television advertising products,” stated Amotz Yarden, CEO, SintecMedia. “With Operative as a key part of our offering, SintecMedia brings TV and digital ad management together, allowing media companies to streamline advertising infrastructure, increase profitability, and drive the long-term strategic control of their business.”
The acquisition is significant as TV and digital services converge and marketers begin embracing audience-based media buying.