StockMarketWire.com - Video advertising specialist Tremor International has reached an agreement with News Corp to acquire Unruly, News Corp's programmatic video marketplace.

Tremor announced today that News Corp would take a 6.91% stake in the company, subject to an 18-month lockup period.

Tremor has also entered into a global partnership with News Corp that will equip Tremor with the exclusive rights to sell outstream video on more than 50 News Corp titles in the UK, US and Australia. Tremor has committed to an ad spend of £30m with News Corp over a three-year period.

News Corp has also agreed to contribute cash towards the cost of integrating Unruly with Tremor.

Unruly is a global brand-safe video platform that uses a combination of proprietary video marketplace technologies and data to deliver content.

In addition, News UK CEO Rebekah Brooks is expected to join Tremor's board as a non-executive director representing News Corp, subject to the completion of the customary directorate appointment due diligence.

Norman Johnston, CEO of Unruly, will join Tremor's board subject to the approval of Tremor's shareholders and the completion of the customary directorate appointment due diligence.

The deal adds an additional 1.2bn unique monthly users through premium publisher partnerships across the US, Europe and Asia Pacific, as well as giving access to exclusive outstream video placements on more than 50 News Corp titles worldwide.

It also adds strong tier-one brands to Tremor's client base, including P&G, Unilever, Nestle, and American Express.

Tremor also announced a trading update for the year ending 31 December 2019.

Adjusted EBITDA was expected to be in-line with expectations, supported by a combination of cost saving initiatives and a general focus on profitable and strategic activities.

However, its performance division continues to be impacted by a combination of regulatory headwinds. Tremor said this had resulted in management anticipating that revenue at a group level would be below expectations for the financial year ending 31 December 2019.

Tremor remains highly cash generative with a strong balance sheet, and $75m of net cash. A more comprehensive trading update covering the full year 2019 figures will be provided in late January 2020.



Story provided by StockMarketWire.com