Millennial Media has snapped up another Boston ad tech firm, Nexage, in a deal pegged at $107.5 million.
The acquisition follows Baltimore-based Millennial Media’s acquisition of Boston ad tech company Jumptap in August in a deal that was worth more than $200 million at the time.
Nexage had raised $24 million in funding, suggesting the acquisition is potentially a modest win for investors and other shareholders, such as employees. Backers include GrandBanks Capital, Relay Ventures, and SingTel Group’s venture capital arm, SingTel Innov8.
Millennial Media will pay approximately $22.5 million in cash and approximately $85 million in stock, according to the announcement of the deal. The company’s shares, however, have been falling steadily in recent months (they’re trading at less than $2 today).
The deal is subject to closing conditions including Millennial Media shareholder approval.
I last covered Nexage, which offers an exchange for buying and selling mobile advertising, a year ago in a post on Boston ad tech firms that could be acquired next:
Recent moves in the advertising technology market — including the IPO of Rocket Fuel and acquisition of Boston’s Jumptap by Millennial Media — point to the maturing of this current wave of ad tech. And that could mean a lot more consolidation ahead. … [Nexage’s] real-time bidding system aims to bring automation and efficiency, and lead to better-targeted ads. Nexage focuses on the “premium” segment of the market, serving mostly large advertisers.
Nexage expected to see revenue in the tens of millions in 2013. Customers have included Hearst, Rovio, Pandora, NFL, and MLB.
The firm employed 60 as of March, according to Sara Castellanos at the BBJ. Nexage was founded in Washington state in 2005, and then moved to California before re-locating to Massachusetts in 2009, following a funding round led by GrandBanks Capital.
Nexage is located in Boston’s Financial District on Arch Street. It hasn’t yet been decided if the company’s employees will move into the Millennial Media office on Seaport Boulevard in South Boston, a Millennial Media spokesperson said. That office currently employs 120.
Kyle Alspach has worked in journalism in Massachusetts since 2005 and was one of the original staff writers at BetaBoston.
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