Outbrain Completes the Acquisition of Teads

Core Insights - Outbrain Inc. has successfully completed the acquisition of Teads, creating a unified omnichannel outcomes platform for the open internet, operating under the Teads brand [2][22] - The merger aims to address significant gaps in the advertising industry by providing a scaled end-to-end platform that drives outcomes from branding to purchase across various screens [4][8] Company Overview - The new Teads will be one of the largest open internet companies, with a combined advertising spend of approximately $1.7 billion for FY24, reaching 2.2 billion consumers [8] - The company will leverage Outbrain's predictive technology and AI optimization to enhance marketing solutions, offering a single partner for marketers to achieve measurable outcomes [3][22] Financial Highlights - The combined companies are preliminarily reporting an Ex-TAC Gross Profit of approximately$623 million and Adjusted EBITDA of approximately $230 million for 2024, including estimated synergies of$65-75 million [8][16] - The transaction value is approximately $900 million, consisting of$625 million in cash and 43.75 million shares of Outbrain [10][12] Strategic Goals - The merger is expected to create a stronger ecosystem that prioritizes beautiful creative experiences, trust, and transparency in media, ultimately delivering meaningful outcomes for all stakeholders [6][22] - The company anticipates achieving $65-75 million in annual revenue and cost synergies in FY 2026, with further opportunities for expanded synergies in subsequent years [15][28] Operational Structure - Outbrain CEO David Kostman will lead the combined company, with former Teads CEOs Jeremy Arditi and Bertrand Quesada serving as Co-Presidents [8] - The new Teads will directly partner with over 10,000 publishers and 20,000 advertisers globally, enhancing its market reach and operational capabilities [22]