Taboola is buying a rival adtech company to gain a bigger foothold with lucrative finance clients
Adam Singolda's Taboola is going shopping.
John Lamparski/Getty Images Taboola is eyeing a bigger slice of the adtech market.
It has made an offer to acquire fellow adtech firm Dianomi.
The deal would help it clinch new premium publisher partnerships and blue-chip finance ad clients.
Taboola is expanding its empire.
The adtech company exclusively told CMO Insider it has made an offer to acquire Dianomi, a fellow adtech firm specializing in the finance space.
Similar to Taboola, Dianomi offers an ad network that places sponsored-content widgets across publisher websites.
The acquisition, announced Friday, would help Taboola gain relationships with major publishers such as CNN Business, The Wall Street Journal, and Reuters — partners it doesn't currently work with.
Advertisers that work with Dianomi include big names like Bank of America, Charles Schwab, and Invesco.
Taboola has agreed to acquire Dianomi for £19 million, or approximately $25.4 million, in cash, according to a financial filing.
The deal is potentially worth up to £27 million, or $36.1 million, if certain performance conditions are met.
The upfront acquisition valuation represents about a 68% premium to Dianomi's share price at the close of trading on Thursday.
The timing of the acquisition appears shrewd on Taboola's part.
Last year was challenging for Dianomi.
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