The most prominent Israeli body in the membership sceneSPAC Is ION – the hedge fund that has already issued three SPAC companies on Wall Street in recent months. While its first SPAC company is expected to soon complete Tabula’s merger in the field of content recommendations, the second SPAC company announced today the merger of an Israeli company, also in the fields of technology and media.
Innovid, which develops an independent platform for submitting and measuring digital advertisements in the world of smart TV (Connected TV), will merge with ION Acquisition Corp 2 at an estimated value of $ 1.3 billion. The merger is expected to take place in the last quarter of 2021. As part of the deal with ION, a total of up to $ 403 million has been raised, of which $ 253 million from ION and $ 150 million raised from large institutional entities such as Fidelity, Baron Capital, other ION-related funds. Phoenix Insurance Company and more. Of the amount raised, $ 163 million will go to shareholders who sell shares, $ 200 million to the company’s coffers and $ 40 million to pay for costs related to the move. The merger is carried out according to a revenue multiplier of 8.5 for expected revenues in 2022 – about $ 130 million. The existing shareholders in Innovid will hold approximately 64% of the shares after the merger.
Innovid is an independent software platform that enables the creation, submission and measurement of digital advertising campaigns. The company operates in the field of smart TV, which is a TV broadcast on the Internet infrastructure. The company notes that the television advertising market is estimated at $ 200 billion and is undergoing a significant change with the shift of television viewers from watching traditional linear broadcasting to viewing through smart TVs connected to the Internet.
According to IVC data, since the founding of Innovid in 2007, it has raised a total of $ 95 million, and among its investors are Goldman Sachs, New Spring, Sequoia and Vintage. Innovid was founded in 2008 by Zvika Netter, Tal Haluzin and Tzachi Zigdon. Employs 365 employees, 85 of them in Israel. The company is headquartered in the United States.
According to Inovid, it currently serves 40% of the 200 largest advertisers in the US, and its customers include L’Oreal, Toyota, Bank of America, GSK and more. The company adds that the number of advertisements submitted by Inovid’s platform for smart TVs has increased From 70% since the beginning of 2021 compared to the corresponding period in 2020.
The company’s revenues in 2020 totaled $ 69 million, of which 40% came from the field of smart TVs, 43% from mobile and 18% from desktop. This is compared to revenues of $ 56 million in 2019. This year, revenue is expected to rise to $ 95 million, 48% of which is from smart TVs. The company posted a net loss of $ 0.7 million in 2020, compared to a loss of $ 7.1 million a year earlier. Based on EBITDA (earnings before interest, taxes, depreciation and amortization), Innovid is profitable, with $ 2.6 million in 2020.
Zvika Netter, CEO of Innovid, stated: “In light of the company’s growth and the great value it brings to the market, we have examined over the years various strategic options that will continue to support the company’s development. Making the company public is a significant milestone in the development of Innovid. “Innovid will maintain its status as an independent and neutral company that enables advertisers to create, submit and measure digital TV commercials regardless of global media giants, all through technology developed and tailored specifically to the growing field of smart TV.”
Gilad Shani, CEO of ION, said that Innovid has developed an exceptional platform that helps advertisers convert $ 200 billion in advertising budgets a year from traditional smart TV broadcast channels. in this field.
Morgan Stanley advised ION and Evercore advised Innovid.