Digital advertising platforms Taboola Inc. and Outbrain Inc. entered into an agreement to merge, subject to customary closing conditions.

Under the terms of the merger agreement, Outbrain shareholders will receive shares representing 30% of the combined company plus $250 million of cash, according to an Oct. 3 news release. The combined company will provide advertising services to marketers, news organizations and other digital properties.

Upon closing, Taboola founder and CEO Adam Singolda will become CEO of the combined company, which will operate under the Taboola brand name.

The combined company's board will consist of current Taboola and Outbrain management and board members. Eldad Maniv, President and COO of Taboola, and David Kostman, co-CEO of Outbrain, will manage all aspects of the postmerger integration. Yaron Galai, co-founder and co-CEO of Outbrain, will assist with the transition for the 12 months following the closing.

The combined company will have over 2,000 employees across 23 offices, serving over 20,000 clients in more than 50 countries. Both companies' boards approved the transaction, financial terms of which were not disclosed.

J.P. Morgan Securities LLC acted as exclusive financial adviser to Taboola. Meitar Liquornik Geva Leshem Tal Law Offices and Davis Polk & Wardwell LLP acted as legal counsel to Taboola. Taboola was also supported by Citigroup Global Markets Inc.; Goldman Sachs & Co. acted as financial adviser to Outbrain, and Meitar Liquornik Geva Leshem Tal Law Offices, White & Case LLP and Wilson Sonsini Goodrich & Rosati acted as legal counsel to Outbrain.