Operative Media, Inc., the global leader in digital advertising business management solutions for major media companies, today announced that the company will be acquired by SintecMedia, a portfolio company of Francisco Partners. The combined company brings together TV and digital ad management for media companies and publishers worldwide. Operative's management team, including Lorne Brown, the company's founder, are also investors in the combined business. Brown will take the role of President and remain part of the strategic leadership team within SintecMedia.
"Operative's fantastic customer base and digital advertising solutions are the perfect compliment to our own global client roster and television advertising products," said Amotz Yarden, CEO of SintecMedia. "With Operative as a key part of our offering, SintecMedia brings TV and digital ad management together, allowing media companies to streamline advertising infrastructure, increase profitability and drive the long term strategic control of their business."
SintecMedia is the world's leading television advertising management technology company. Their advanced TV advertising products maximize yield and streamline operations across direct and programmatic television advertising. SintecMedia systems are used by hundreds of the largest television media companies in the world.
This year, according to eMarketer, US digital advertising spending will be $72.09 billion, marking the first year that the digital advertising market matches television, with the global market following similar patterns in the near term. In addition to digital's fast growth, television is rapidly embracing digital and data-driven elements, from smart TVs to audience-based media buying.
Without the right partners, the rapidly changing TV and digital advertising markets can increase cost and complexity for media companies, from managing yield across direct and programmatic sales to operations and billing. The combined offering from SintecMedia and Operative empowers media companies to ensure a profitable advertising business across channels by seamlessly connecting the most important parts of their ad business while minimizing drag and waste.
"SintecMedia's acquisition of Operative is the best possible outcome for our clients and for all media companies working to maximize profitability as TV and digital channels start to intertwine," said Lorne Brown, current CEO and Founder at Operative, taking the role of President at SintecMedia. "We are thrilled to join the SintecMedia team and look forward to continuing to create solutions for media companies in the future."
GCA Advisors, LLC acted as exclusive financial advisor and Dentons US LLP, the world's largest law firm, acted as legal advisor to Operative. Morris Manning and Martin, LLP acted as legal advisor to Francisco Partners and SintecMedia. The acquisition is subject to customary closing conditions including customary regulatory review.
About SintecMedia SintecMedia is the preferred broadcast management software partner for over 300 of the world's top media brands, including NBCU, CBS, ABC, AT&T, STARZ, Star India, Seven Australia and Sky. No other software company brings a comparable depth of experience to create truly innovative software that performs across all platforms, revenue models, and business units. Since 2000, SintecMedia has grown to over 850+ employees in 12 offices around the world and processes more than $33 billion in advertising revenue for the best-known companies in the industry. For more information, visit www.sintecmedia.com.
About Francisco Partners
Francisco Partners is a leading global private equity firm, which specializes in investments in technology businesses. Since its launch over 15 years ago, Francisco Partners has raised over $10 billion in capital and invested in more than 150 technology companies, making it one of the most active and longstanding investors in the technology industry. The firm invests in opportunities where the firm's deep sectoral knowledge and operational expertise can help companies realize their full potential.
About Operative
Since 2001, Operative Media, Inc. has developed software and services that help publishers, agencies, and networks simplify the business of advertising. Media companies rely on Operative to sell, traffic, and bill premium ad inventory, increasing revenue and decreasing overhead. Operative's client base, which controls over 20 percent of the global ad market, includes NBCUniversal, Meredith, Refinery29, Wall Street Journal, Comcast, iHeartMedia, BuzzFeed, VICE Media, Vox, and Cox. For more information, visit www.operative.com