Open web recommendation platform Outbrain has bolstered its brand and video offer after agreeing terms to acquire a Swiss contextual video technology platform.
Video Intelligence AG (VI) serves digital and connected TV media owners by combining contextually-matched content with in-stream video advertising across desktop, mobile and connected TVs.
This enables media owners to add relevant video content to articles to encourage user engagement and monetization, placing VI’s services in high demand among publishers ranging from IDG to Der Spiegel and Funke. More recently VI dipped its toes in the connected TV space in partnership with Samsung TV+.
David Kostman, co-chief executive of Outbrain, said: “The combination with VI will allow us to deepen our partnership with media owners, providing mid- and top-of-article video solutions. It will also expand our addressable market, introducing high-quality in-stream video inventory to support our brand advertisers.”
Kai Henniges, VI co-founder and chief exec, continued: “Our years of video expertise and unique offering for publishers and CTV providers are a perfect addition to Outbrain’s leading market position and premium global media owner partnerships. Together we will accelerate our mission to inspire, inform and entertain users by putting video in context.”
The agreement to acquire VI for $55m is to be funded by $46.75m in cash, with the remainder contributed via 412,500 Outbrain shares. The transaction is expected to conclude by the first quarter of 2022.
Outbrain will be hoping that the tie-up goes better than an ill-fated merger with Taboola, which fell through at the eleventh hour following a breakdown in trust.