November 7, 2024–Last week, Samba TV confirmed its purchase of Semasio, a development that dealmakers hope represents the recent trickle of mergers and acquisitions in ad tech that will flow into a more consistent pipeline.
Given that the economic and political climate (both macro and micro) would theoretically further facilitate such activity, such aspirations are gaining momentum.
Samba TV’s most recent purchase capped off a flurry of activity during October, during which Zeta announced its purchase of LiveIntent, and Connatix confirmed its earlier reported merge with JW Player.
Meanwhile, speculation continues to mount that Integral Ad Science is exploring its options. Sources indicate that private equity would be the most likely candidate to take the publicly traded ad tech company into private ownership. Of course, any such a deal would likely prove a billion-dollar-plus transaction, echoing Outbrain’s purchase of Teads in August.
In Q3 2024, ad tech M&A activity saw significant growth, with overall volume up by 13% quarter over quarter and notable increases in scaled transactions over $100 million, according to investment bank LUMA Partners, which also identified Publicis’ purchase of Mars United Commerce as a significant deal during the period.
Ad tech M&A deals greater than $100 million rose 26% quarter over quarter, driven by strategic acquisitions. This momentum reflects a broader trend of so-called “rationalization” deals aimed at consolidating or expanding into new markets.
Additionally, shifts in the digital ecosystem, including changes to cookie policies and ongoing antitrust trials, are anticipated to further impact dealmaking in this space, according to LUMA Partners’ CEO Terence Kawaja.
“So, we’re not in a gangbuster bull market for deals, but it is a revival relative to 2023, however,” he added. “Most of these deals that have been announced are in the latter [rationalization and consolidation] category; they’re good, but not great… nothing to write home about.”