LONDON (Alliance News) - Video advertisers Taptica International Ltd and RhythmOne PLC on Wednesday both confirmed they were in "advanced" talks over an all-share merger.
RhythmOne said it made its statement in response to press reports, with Sky News reporting late Tuesday the two were close to a merger.
The merger would be structured as an acquisition of RhythmOne by Taptica, with Taptica issuing 16 new shares for every 19 RhythmOne shares.
This would give Taptica shareholders 50.1% of the new company, and RhythmOne's owners the rest. The combined firm would have a market capitalisation of around GBP262 million, based on Taptica's market cap of GBP115 million and RhythmOne's of GBP147 million.
Taptica has until 1700 GMT on February 26 to make clear its intentions whether to make the offer or not.
"The combination of the two businesses would create one of the leading video advertising companies in the US, delivering significant economies of scale, product offering, revenue synergies and supply chains to compete with the industry leaders, in an industry where scale of offering is key," said the two.
They did stress there is no certainty a transaction will occur.
RhythmOne shares were trading flat on Wednesday morning at 187.20 pence each, while Taptica was up 14% at 191.26p.
