July 05, 2022 – Media and Games Invest SE (“MGI” or the “Company”, ISIN: MT0000580101; Ticker M8G; Nasdaq First North Premier Growth Market and Scale Segment Frankfurt Stock Exchange, OTCQX: MDGIF), today announced that is has acquired mobile demand-side platform (DSP) start-up Dataseat Ltd (“Dataseat”), further extending the technical capabilities of the Company’s ad-software platform.
Dataseat, a young U.K.-based company, is an innovative, technically advanced, and fast-growing mobile DSP specialized in future proof user acquisition using contextual signals instead of using device IDs. Dataseat provides mobile app developers and game publishers with the possibility to efficiently reach new audiences in a privacy first way.
Dataseat was founded in 2018 by ad-tech veterans David Philippson and Dr. Paul Hayton, who previously founded Ad-X Tracking, one of the first mobile measurement partners, before selling it to Criteo in 2013. Both founders have agreed to join the MGI team and provide their valuable expertise to assist Dataseat to reach its full potential.
Dataseat is specifically focused on supporting mid-to-large-sized gaming companies by using contextual signals, without any reliance on device IDs or other user profiling. Dataseat gives advertisers full control, transparency, and adaptability over their campaigns in a world where identifiers such as IDFA are deprecated. Dataseat relies on artificial intelligence to optimize campaigns by fully using contextual signals, eliminating the need for a third-party identifier.
Since its founding only four years ago, Dataseat has built a unique and proven set of technologies that have been able to generate consistent results and scale for both Tier 1 games and non-games app advertisers.
A small accretive acquisition, accelerating the Flywheel – more advertisers lead to more publishers:
As part of MGI's advertising software platform, the Dataseat DSP now will have direct access to MGI's strong first-party content and data, including a games portfolio with more than 800 million users and its Software Development Kit (“SDK”) which is integrated into more than 20,000 apps, giving access to 2 billion mobile users. This combined with other media activities and customers of MGI’s ad-tech offering under the Verve brand will enable Dataseat to further increase its speed of growth.
Integrating Dataseat into MGI’s media offering will also make its advertising software platform even more attractive for games and app-first advertisers. Additionally, there will be a positive impact for MGI’s own mobile game studios, including the recently acquired studio AxesInMotion. The acquisition will directly increase the number of advertisers from the games sector.
Scaling MGI’s demand-side with future oriented technology – ticking further boxes in the ad value chain:
Dataseat will strengthen MGI's DSP segment (user acquisition for advertisers), which currently generates 7% of the Company’s revenues, while the supply-side platform (“SSP”) segment (monetization of advertising space for publishers) currently accounts for 93% of group revenues.
To cover the high volume on the SSP segment, MGI currently works with various other DSPs, which allows the Company to match an already strong supply (publishers) with the appropriate level of demand (advertisers). Strengthening direct demand will lead to further efficiencies for the advertisers, better results for the publishers and a higher overall margin for MGI. The future-oriented focus on targeting without using identifiers also adds a strong USP to MGI’s offering.
Attractive deal structure – low upfront investment and highly conditional deferred payments:
Founded in 2018, Dataseat is a young DSP start-up with a small team of 25 employees, that already has shown strong organic growth potential. Revenues for 2022 are expected to be in the mid-single digit million range (GBP) and for 2022 management expects Dataseat to reach breakeven on an EBITDA level, whereas the plan is to further invest in growth and speed up growth and scaling. The purchase price consists of (i) a fixed component in the high single-digit GBP million range, (ii) a conditional deferred purchase price linked to the retention of the founders, as well as (iii) a long-term performance-based earn-out component. The fixed upfront component will be paid in cash, while the deferred as well as the earn-out components can be paid in either cash or shares. In case the deferred payment is made in cash, the payment will occur in 18 months following closing, and in all other cases, which includes deferred and earn-out components, the payments will occur in 36 months. The parties have agreed not to disclose further details of the purchase price.
Dataseat is being acquired by Verve Holding GmbH, a 100% subsidiary of MGI.
The information in this release has been made public through the agency of the responsible persons at MGI set out below for publication at the time stated by MGI's news distributor EQS Newswire at the publication of this release. The responsible persons below may be contacted for further information.
For further information, please contact:
Jenny Rosberg, ROPA, IR contact Stockholm
Axel Mühlhaus / Dr. Sönke Knop, edicto GmbH, IR contact Frankfurt
+49 69 9055 05 51
About Media and Games Invest SE
Media and Games Invest SE (“MGI”) is an advertising software platform with strong first party games content. MGI’s main operational presence is in North America and Europe. The company combines organic growth with value-generating synergetic acquisitions, which has demonstrated continuous strong profitable growth with a revenue CAGR of 77% (2018 –2021). Next to strong organic growth, the MGI Group has successfully acquired more than 35 companies and assets in the past 6 years. The acquired assets and companies have been integrated and amongst others cloud technology is actively used to achieve efficiency gains and competitive advantages. MGI is registered as Societas Europaea in Malta (registration number SE 15) and its shares are listed on Nasdaq First North Premier Growth Market in Stockholm and in the Scale segment of the Frankfurt Stock Exchange. The Company has two secured bonds that are listed (or will be listed) on Nasdaq Stockholm and on the Frankfurt Stock Exchange Open Market.
The Company's certified advisor on Nasdaq First North Premier Growth Market is FNCA Sweden AB; [email protected], +46-8-528 00 399.