New York-headquartered online content distribution company Outbrain Inc. announced Tuesday that it has entered an agreement to acquire German online advertising company Ligatus GmbH in a stock deal. The financial terms of the deal were not disclosed. The acquisition is subject to regulatory approvals and is expected to close by the second quarter of 2019.
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Cologne-headquartered Ligatus is a wholly owned subsidiary of German publisher Gruner + Jahr GmbH & Co. KG. The company offers native advertising services and has offices in Germany, France, Spain, Italy, Belgium, and the Netherlands, employing some 160 people. With the acquisition, Outbrain hopes to expand in Europe with the addition of over 1,400 premium publishers, including STERN, RTL and Femme Actuelle, the company said in a statement.
Outbrain co-CEOs David Kostman and Yaron Galai. Photo: Noam Galai
The acquisition is expected to bring $100 million in sales in the first year, Outbrain co-CEO David Kostman told Calcalist in an interview on Tuesday.
Founded in 2006 in Tel Aviv, Outbrain buys advertising space on publishers’ websites, which it uses to promote sponsored content. Outbrain’s content has appeared on websites including CNN, BBC, The Washington Post, The Guardian, and Spiegel Online. The company has offices in 15 cities worldwide.