Outbrain has finalised the acquisition of Teads, forming a unified omnichannel platform under the Teads brand. The merger positions the combined entity to manage an advertising spend of approximately $1.7 billion in the fiscal year 2024, with a reach extending to 2.2 billion consumers globally.

Outbrain chief executive David Kostman will continue his leadership as CEO of the newly combined company, while former Teads CEOs Jeremy Arditi and Bertrand Quesada will serve as Co-Presidents. The transaction is valued at around $900 million, comprising $625 million in cash and 43.75 million shares of Outbrain. Altice, the selling shareholder of Teads, will have the opportunity to nominate two out of ten board members.

The merger aims to establish one of the largest optimised supply paths on the premium open internet. The combined company plans to leverage Outbrain's predictive technology and AI optimisation to enhance its advertising solutions.

"I am extremely excited about this new chapter in our journey. This transformative merger creates a company that directly addresses a large gap in the advertising industry: a scaled end-to-end platform that can drive outcomes, from branding to consideration to purchase, across screens," said Kostman.

The merger is anticipated to achieve annual synergies of $65-75 million by the fiscal year 2026. Outbrain is financing the transaction through existing cash resources and $625 million in committed debt financing. Preliminary financial results for 2024 indicate a combined Ex-TAC Gross Profit of approximately $623 million and an Adjusted EBITDA of around $230 million.

"Together, we are creating an extraordinary new company, combining the best of both organizations' deep expertise in omnichannel video branding solutions and performance advertising," said Kostman. "The new Teads' mission is to drive lasting value with an offering that invites marketers to expect better outcomes, media owners to expect sustainable value, and consumers to expect elevated experiences. I want to thank the teams of both Outbrain and Teads, who have pioneered major advertising categories, and have built leading global companies over more than a decade. It is their innovation and commitment that have brought us to this moment and will propel us to new heights."

Arditi, who will take on the remit of chief business officer alongside his Co-President role, said: "We're committed to creating a solution that will harness the untapped opportunity of the open internet, and allow all of its constituents to thrive. We believe that by prioritizing beautiful creative experiences, trust and transparency in media, and delivery of meaningful outcomes, we can create a stronger ecosystem that provides value for all."

Global Head of Integrated Media, Performance Marketing, and BMI Management at Lipton Teas and Infusions, Sital Banerjee, said: "The merger between Teads and Outbrain makes a lot of sense strategically. We look forward to exploring the new possibilities this provides us with to reach our audiences in a new and interesting way, to deliver full funnel solutions and better business outcomes."