Dianomi has agreed to a recommended takeover by the advertising technology company Taboola, valuing the UK native advertising specialist at up to £27m.
Under the deal, Dianomi shareholders will receive 64p in cash per share, valuing the company at about £19m, plus a contingent payment of up to 24p, bringing the maximum consideration to 88p a share.
The cash element alone is a 68% premium to Dianomi’s undisturbed price, rising to around 350% against its average over the past six months, reflecting a sharp decline in the shares over that period.
Dianomi, which places native advertising for financial, business and lifestyle brands across blue-chip publishers, said the deal would accelerate its strategy by combining it with Taboola’s larger global platform.
Nasdaq-listed Taboola, whose technology reaches more than 600 million daily users through publishers including Yahoo and NBC News, said Dianomi’s finance specialism was a natural fit. This is difficult to argue against, and the deal makes a lot of sense.
The extra 24p is not guaranteed: it depends on how many of Dianomi’s publishers adopt Taboola’s standard terms and the revenue they generate.
The Dianomi board unanimously recommended the offer. They’ve had a tough time since their IPO and a takeover will be welcomed by all involved.