Singtel selling Amobee to Tremor International
Singtel is selling Amobee, it’s digital marketing arm to Tremor International for US$239 million.
According to Singtel, the divestment is in line with Singtel’s strategic reset. This reset is to sharpen its business focus and recycle assets and capital into growth areas with higher returns.
Singtel Group CEO Yuen Kuan Moon added that the divestment reflects the group’s resolve in executing to its strategic reset. “We are actively reshaping our portfolio. This is to ensure optimal allocation of resources towards new growth drivers, as well as improve shareholder value,” he added. Following the divestment, the group will cease to hold any equity interest in the Amobee business.
Singtel placed Amobee under strategic review in May 2021. A year later on 27 May, Singtel said Amobee was classified as a subsidiary held for sale in March this year. Amobee is classified as a non-core business within the group.
Singtel selling Amobee at a loss
Singtel expects to complete the Amobee divestment by September 2022. It is subject to the fulfilment of certain conditions under the Sale and Purchase Agreement, including the receipt of relevant regulatory approvals. Singtel bought over Amobee in 2012 for about US$288 million then. The Singapore telco said back then that the acquisition would “complement its existing advanced geo-localisation capabilities to help marketers better target its mobile subscribers in the region”. Taking into account inflation, technically Singtel is selling Amobee at a massive loss.
Tremor International listed its reasons to purchase Amobee to expand its US and international presence as well as enhance its linear TV capabilities.
According to the Wall Street Journal, Tremor currently has 900 employees globally. In 2020, it boosted its ad tech capabilities by snapping up Unruly. A year later, it bought over CTV video ad server and media management platform, Spearad, for US$14.7 million. SpearAd founders Erhard Neumann and Mark Thielen joined the Tremor leadership team following the acquisition.