12:51 PM EDT, 08/01/2024 (MT Newswires) -- Outbrain ( OB ) said Thursday it will purchase global video platform company, Teads, for about $1 billion to create an open internet advertising platform across CTV, web and mobile apps.

The transaction consists of $725 million upfront cash, $25 million deferred cash, 35 million Outbrain ( OB ) shares, and $105 million of convertible preferred equity, the company said. It expects to close the deal in Q1.

Outbrain ( OB ) said it plans to finance the transaction with existing cash resources and $750 million in committed debt financing from Goldman Sachs Bank USA, Jefferies Finance and Mizuho Bank.

The combined platform will cover over 50 markets and reach over 2 billion consumers per month, the company said.

The shares were up almost 8% in recent trading.

Price: 5.16, Change: +0.38, Percent Change: +7.95