Outbrain To Acquire Teads From Altice For Approx. $1 Bln; Stock Up

(RTTNews) - Outbrain Inc. (OB), Thursday announced that the company would acquire omnichannel video platform Teads from Altice USA, Inc. (ATUS) for approximately $1 billion on a cash free, debt free basis, including an upfront payment of $725 million, and a deferred cash payment of $25 million.

Through the transaction, the technology platform expects to combine expertise and product offerings of both companies to create one of the largest open Internet advertising platforms.

Outbrain plans to fund the transaction with existing cash resources and $750 million in committed debt financing. Additionally, it will also issue 35 million shares of common stock, valued at approximately $169 million, and $105 million in convertible preferred equity to Altice.

The transaction, expected to be completed in the first quarter of 2025, is projected to generate adjusted EBITDA of $230-$250 million based on the combined 2024E.

Currently, Outbrain's stock is moving up 5.44 percent, to $5.04 on the Nasdaq.