Acquisition Adds Innovative AI-Based IDless Platform Capabilities for Mobile and Non-Gaming Gaming Businesses
Dataseat is a DSP startup with a small team that strengthens the demand side of MGI and further accelerates the MGI flywheel as more advertisers lead to more publishers on the company’s software platform
Small but accretive acquisition translates to immediate synergies for MGI’s advertising partners, including its game studios
VALLETTA, MALTA/ACCESSWIRE/July 5, 2022/ Media and Games Invest SE (“MGI” or the “Company”, ISIN: MT0000580101; Ticker M8G; Nasdaq First North Premier Growth Market and Scale Segment Frankfurt Stock Exchange, OTCQX:MDGIF), announced today that it has acquired the mobile demand-side platform (DSP) Dataseat Ltd (“Dataseat”), further extending the technical capabilities of the Company’s advertising software platform.
Dataseat, a UK-based start-up, is an innovative, technically advanced and fast-growing mobile DSP specializing in future-proofing user acquisition using contextual cues instead of using device identifiers. Dataseat offers mobile app developers and game publishers the ability to effectively reach new audiences with privacy first.
Dataseat was founded in 2018 by ad tech veterans David Philippson and Dr. Paul Hayton, who previously founded Ad-X Tracking, one of the first mobile measurement partners, before selling it to Criteo in 2013. two founders agreed to join MGI. team and bring their valuable expertise to help Dataseat reach its full potential.
Dataseat is specifically focused on supporting mid to large sized gaming businesses using contextual signals, without any reliance on device IDs or other user profiles. Dataseat gives advertisers full control, transparency and adaptability over their campaigns in a world where identifiers such as IDFA are obsolete. Dataseat leverages artificial intelligence to optimize campaigns by making full use of contextual signals, eliminating the need for a third-party ID.
Since its inception just four years ago, Dataseat has built a unique and proven set of technologies that have been able to drive consistent results and scale for Tier 1 games and non-gaming application advertisers.
A small accretive acquisition, accelerating the Flywheel – more advertisers lead to more publishers:
As part of MGI’s adware platform, the Dataseat DSP will now have direct access to MGI’s robust first-party content and data, including a portfolio of games with over 800 million users and its kit of software development (“SDKs“) which is integrated into more than 20,000 applications, giving access to 2 billion mobile users. This combined with other media activities and customers of MGI’s ad-tech offer under the Verve brand will enable Dataseat to further accelerate its growth rate.
The integration of Dataseat into MGI’s media offering will also make its adware platform even more attractive to game and app advertisers. Additionally, there will be a positive impact for MGI’s own mobile game studios, including recently acquired studio AxesInMotion. The acquisition will directly increase the number of advertisers in the gaming sector.
Evolving demand for MGI with future-oriented technology – ticking other boxes in the advertising value chain:
Dataseat will strengthen MGI’s DSP (user acquisition for advertisers) segment, which currently generates 7% of the Company’s revenue, while the offering platform (“SSP“) (monetization of advertising space for publishers) now represents 93% of the group’s revenues.
To cover the high volume in the SSP segment, MGI is currently working with various other DSPs, which allows the Company to match an already strong supply (publishers) with the appropriate level of demand (advertisers). Stronger direct demand will mean additional efficiencies for advertisers, better results for publishers, and a higher overall margin for MGI. The forward-looking focus on targeting without using identifiers also adds a strong USP to MGI’s offering.
Attractive transaction structure – low initial investment and highly conditional deferred payments:
Founded in 2018, Dataseat is a young DSP start-up with a small team of 25 employees, which has already shown strong potential for organic growth. Revenues for 2022 are expected to be in the mid-single-digit million (GBP) range and for 2022 management expects Dataseat to break even at the EBITDA level, while the plan is to invest more in growth and accelerate growth and scale. The purchase price consists of (i) a fixed component in the high single digit range of £1 million, (ii) a contingent deferred purchase price linked to retention of the founders, as well as ( iii) a long-term compensation based on the performance component of earn-out. The initial fixed component will be paid in cash, while the deferred component as well as the earn-out component may be paid in cash or in shares. In the event that the deferred payment is made in cash, the payment will take place within 18 months following closing, and in all other cases, including deferred items and price supplements, the payments will take place within 36 months. The parties have agreed not to disclose further details of the purchase price.
Dataseat is being acquired by Verve Holding GmbH, a wholly owned subsidiary of MGI.
The information contained in this release has been released through the responsible MGI persons listed below for release at the time specified by MGI’s news distributor, EQS Newswire, at the time of the release of this release. The responsible persons below can be contacted for further information.
For more information, please contact:
Jenny Rosberg, ROPA, contact IR Stockholm
Axel Mühlhaus / Dr. Sönke Knop, edicto GmbH, contact IR Frankfurt
+49 69 9055 05 51
About Invest SE Media and Games
Media and Games Invest SE (“MGI”) is an adware platform with strong proprietary game content. MGI’s primary operational presence is in North America and Europe. The company combines organic growth with synergistic value-creating acquisitions, which has demonstrated continued strong profitable growth with a CAGR of 77% (2018-2021). In addition to strong organic growth, the MGI Group has successfully acquired over 35 companies and assets over the past 6 years. Acquired assets and businesses have been integrated and, among other things, cloud technology is being actively used to achieve efficiencies and competitive advantages. MGI is registered as Societas Europaea in Malta (registration number SE 15) and its shares are listed on the Nasdaq First North Premier Growth Market in Stockholm and on the Scale segment of the Frankfurt Stock Exchange. The Company holds two covered bonds which are listed (or will be listed) on Nasdaq Stockholm and the Open Market of the Frankfurt Stock Exchange.
The Company’s certified advisor on the Nasdaq First North Premier Growth Market is FNCA Sweden AB; [email protected], +46-8-528 00 399.
THE SOURCE: Media and Games Invest SE
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