Adaptive Medias Enters into LOI to Merge with Adsupply

Apr 05, 2016


Adaptive Medias, Inc., a video technology company that supports publishers, content producers and brand advertisers, announced that it has executed a Letter of Intent ("LOI") to merge with Los Angeles-based digital advertising technology company AdSupply, Inc. Adaptive Medias will pay $8 million in cash and issue stock representing approximately 53% of the Company post merger to AdSupply in consideration for the merger.

In its first full year, the combined entity expects to generate more than $30 million in revenues and $2.5 million in earnings. The merged company will be consolidated into Adaptive Medias with its common stock continuing to trade under the ticker symbol "ADTM." The new combined entity plans to apply for a listing on the NASDAQ following the closing of the merger.

Privately held AdSupply's programmatic online marketplace is ranked by comScore as the 21st largest online advertising network and allows brands and agencies to buy high engagement advertising across quality websites, both online and on mobile. Since its inception in 2012, it has produced consecutive annual revenue growth of greater than 30%, reaching unaudited record revenues of $18.5 million in 2015.