Israel-based Tremor International Ltd. agreed to acquire News Corp.'s video advertising platform Unruly Group Ltd.
The deal will see Tremor International issuing 8,525,323 shares or about 6.91% of its voting share capital to News Corp., with the latter agreeing not to sell any of the shares for 18 months. The shares are expected to begin trading on the AIM submarket of the London Stock Exchange on Jan. 10.
News Corp. will also contribute cash to cover the integration costs. Tremor International committed to spending £30 million over three years on exclusively selling outstream video ads on more than 50 News Corp. titles in Australia, the U.K. and the U.S.
Rebekah Brooks, CEO of News Corp. unit News UK & Ireland Ltd., will join Tremor International as a nonexecutive director, subject to the completion of due diligence. Unruly CEO Norman Johnston will also sit on the video advertising technology provider's board, which must be approved by Tremor International's shareholders.
Tremor International said it expects to meet its EBITDA expectations for the year ending Dec. 31, 2019, due in part to cost-saving measures. The company estimates to have ended the previous year with about $75 million of net cash.
Tremor International, formerly Taptica International Ltd., earlier completed a merger with online advertising company RhythmOne PLC in April 2019.