The world’s largest independent ad delivery platform for connected television is going public in a SPAC deal announced Thursday.
The SPAC Deal: Innovid, a portmanteau of innovation and video, is going public via SPAC merger with ION Acquisition Corp 2 IACB.
Innovid's investors include Goldman Sachs GS and Sequoia Capital.
The merger transaction is expected to close in the fourth quarter of 2021.
About Innovid: Founded in 2008, Innovid provides advertisers with a platform for targeted advertising on connected television, mobile television and desktop TV.
The company said it is the only company with an ad server purpose-built for connected TV.
Innovid provides the infrastructure for platforms including Roku ROKU and Hulu.
Innovid has a partnership with Comcast Corp CMCSA for ads delivered on the Peacock streaming platform.
The first and only interactive Super Bowl ad was launched by Innovid.
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Innovid's Growth Projections: Innovid sees the $200-billion television advertising market shifting from linear television to connected television.
“The rapid shift of viewership from linear TV to streaming has driven marketers to make CTV a strategic investment focus,” Innovid co-founder and CEO Zvika Netter said.
The company focuses on the top 200 television advertisers representing 75% of the U.S. adverting spending dollars. Innovid serves more than 40% of the top 200 U.S. television advertisers.
Innovid serves global brands across several continents and plans to continue to grow its international presence after the merger.
Innovid's Financials: Innovid had revenue of $69 million in fiscal 2020. The company is forecasting revenue to grow 38% year-over-year in fiscal 2021 to $95 million and grow 37% year-over-year to $130 million in fiscal 2022.
Innovid has 80% gross margins and a goal of hitting a range of 80% to 85%.
The company’s existing clients represent 90% of revenue, providing strong visibility into future revenue projections.
IACB Price Action: Shares of IACB are up 1% to $9.97 Thursday.
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