• by Laurie Sullivan , 8 hours ago

Taboola is expanding its ad-targeting business within business, finance and lifestyle market segments through the acquisition of Dianomi, a U.K.-based digital advertising-services provider.

The acquisition consolidates contextually relevant native ad inventory in finance and other high-value sectors.

Through the acquisition of Dianomi, Taboola uses artificial intelligence (AI) to bridge the gap between massive scale and high-intent audiences, giving advertisers a combined platform to reach affluent consumers.

"Dianomi has demonstrated a commitment to connecting the largest financial brands in the world with their target audience to power successful performance-driven advertising,” Taboola CEO Adam SIngolda said.

The deal, which is subject to regulatory closure requirements, announced Friday for an up-front cost of about 64 pence per share, which totals £19 million, approximately $25.4 million.

The details of the deal also include a contingent earn-out of up to an additional 24 pence per share.

If certain performance milestones are hit, the total deal value rises to £27 million, which converts to between $34.3 million and $36.1 million, depending on fluctuating exchange rates. 

Singolda believes that Dianomi’s focus to help advertisers reach potential consumers in business and finance is a great complement to Taboola’s ability to drive performance within these verticals and across all other verticals as well.

Dianomi share rose 74% to 66.00p in London on Friday morning, Morningstar reported, following the news of Taboola’s acquisition.

“The contingent consideration depends on Dianomi's publishing clients agreeing to incorporate some provisions of Taboola's standard terms into their agreements,” Morningstar reported.

As combined companies, Taboola and Dianomi are expected to build a network of publishers that advertisers can tap into to reach audiences via Taboola’s Realize performance advertising platform.

Realize is a technology platform that leverages Taboola’s supply of first-party data and artificial intelligence (AI).

Dianomi services, similar to Taboola's ad network that places sponsored-content widgets across publisher websites, brings clients such as Charles Schwab, Invesco and Bank of America, with access to large, high intent audiences via partnerships with hundreds of premium publishers such as Reuters, CNN Business, the Times, and Wall Street Journal.

The boards of the companies have reached an agreement in which Taboola Europe Limited, a wholly owned subsidiary of Taboola, will acquire Dianomi, which provides digital advertising services to clients in business, finance and lifestyle sectors.

The acquisition is expected to be completed before the end of 2026, subject to the satisfaction of customary regulatory conditions and approval by Dianomi shareholders.