The deal is worth $107.5 million in cash and stock, the two firms disclosed when they initially announced the deal in September. Based on the terms announced then, Millennial Media will pay $22.5 million in cash and approximately $85 million in stock for the company.
For Millennial Media, the systems developed by Boston-based Nexage offer a way to bolster its mobile ad platform. As the ad business shifts more toward automated, cross-platform campaigns, the publicly-traded company sought ways to increase offerings to its network of about 60,000 mobile apps and sites. Nexage offers a Supply Side Platform (SSP) that brings Millennial’s network of ad space sources to 120, and allows real-time bidding for advertisers.
Nexage’s capabilities allow buyers to acquire space through real-time bidding, as well as in direct and private exchanges, CEO Michael Barrett said in a statement.
“The entire industry is facing a programmatic shift,” Barrett said, referring to the automated systems-based approach expected to grow quickly over the next five years. “Advertisers and publishers are moving toward automated channels to buy and sell measurable media, and Millennial Media is uniquely positioned to help them succeed.”
With the deal, former Nexage CEO Ernie Cormier will become a member of Millennial Media’s Board of Directors.-30-