InMobi Buys US Based AerServ For $90mn

Mobile ad-tech firm InMobi has acquired Los Angeles-based AerServ, which deals with inventory and audience monetisation technology for mobile publishers, for $90 million (around Rs 574 crore) in cash and stock.

Amidst declining revenues, InMobi hopes the acquisition will enhance monetisation for publishers globally and enhance premium mobile programmatic platform InMobi Exchange.

After the deal, InMobi’s video and programmatic business will account for 35% of the overall company revenue and will solidify InMobi’s leadership position in the mobile video advertising industry in the US.

Abhay Singhal, co-founder and chief revenue officer at InMobi said “This acquisition fits with our global strategy to bring best-in-class technology for premium publishers and driving mobile programmatic video revenues to them. Our combined entities will double our headcount in the US while establishing a product and tech hub for InMobi in Los Angeles, a hotspot of innovation for media and video content. We are two profitable companies combining forces in North America and this will cement our leadership position in video advertising, enabling us to continue investing heavily”.

Singapore-registered holding company InMobi Pte Ltd’s revenue dropped to $280 million in 2016-17 from $283 million in the previous financial year, according to filings with Singapore authorities. InMobi recorded a $12.7 million loss in the financial year ended 31 March 2017. The company claims that it has been EBITDA profitable since June 2016.