Millennial Media has announced that they have acquired Jumptap. The acquisition was a predominantly made in Millennial Media stock. Jumptap shareholders will receive 24.6 million shares in Millenial Media, which gives them around 22.5% ownership in the company. The combined stock and cash components of the transaction values Jumptap at around $232 million.
Millennial Media trades on the NYSE stock exchange and has a market cap of over $559 million. Jumptap chief executive officer George Bell will be joining the Millenial board of directors as the vice chairman.
?Millennial Media already runs one of the largest third-party digital media businesses, despite mobile being in its early stages,? stated Millennial President and CEO Paul Palmieri. ?Jumptap?s expertise in performance, cross-screen, real-time bidding and third-party data fit well with, and provide incremental scale to Millennial Media?s existing platform.?
Jumptap started in 2004 and raised $122 million in total funding from investors like General Catalyst and Redpoint. Jumptap was considering going public last year. Millennial reported $177.7 million in adjusted revenues for 2012 and Jumptap reported $63.6 million. Millennial saw net losses of $5.4 million and Jumptap saw net losses of $13 million. The combined companies will see revenues of between $340 million and $350 million with adjusted EBITDA at between $1 million and a loss of $1 million.