Nielsen to Buy DoubleVerify in Merger Deal
DoubleVerify withdrew its outlook and suspended investor calls while the Nielsen transaction remained pending.
Nielsen Holdings (DV) agreed to acquire DoubleVerify Holdings, Inc. (DV) under a definitive merger agreement announced Thursday. The companies did not specify the transaction’s value or whether Nielsen would pay in cash, stock or a combination of the two.
DoubleVerify entered into the agreement with Neptune BidCo US Inc., a Delaware corporation identified as the parent entity in the transaction. The acquisition would bring DoubleVerify under Nielsen once the merger was completed, though the announcement details did not include an exchange ratio, cash consideration, premium or expected closing date.
The target sells technology used to evaluate, verify and measure digital advertising. Its activation business covers advertising impressions purchased through programmatic demand-side and social-media platforms, while its measurement operation serves impressions bought directly on publishers, connected television and social-media properties. DoubleVerify also provides data analytics to platforms and publishers seeking to assess their advertising inventory.
DoubleVerify generated second-quarter revenue of $193.8 million, up 3% from a year earlier. Measurement revenue rose 6% to $66.8 million, and supply-side revenue increased 13% to $19.3 million, while activation revenue declined 1% to $107.7 million. The company reported net income of $12.9 million and adjusted earnings before interest, taxes, depreciation and amortization of $65.3 million, representing a 34% margin.
The company ended June with $210 million in cash and no debt outstanding, giving the pending transaction a target with a net-cash balance sheet. DoubleVerify had $1.31 billion of assets and $215.6 million of total liabilities at quarter-end.
DoubleVerify suspended future earnings and investor calls for the duration of the deal’s pendency, including a call that had been scheduled for the day of the announcement. It also withdrew its previously issued financial outlook and guidance until the transaction is resolved. Those steps leave the merger process, and the conditions still required for completion, as the company’s central forward path.