The connected TV/OTT advertising platform for regional and local advertisers owned by TEGNA has acquired what is being described as “a next-generation demand-side platform” focused on the same segment of the ad pie as TEGNA’s Premion LLC.
The acquisition of Octillion Media, TEGNA says, widens Premion’s capabilities in the growing connected TV marketplace by combining Octillion’s technology with Premion’s applications.
While TEGNA did not disclose how much it is paying for Octillion Media, it said it will cover the cost of the acquisition with available cash on hand. This, TEGNA added, will not have a material impact on TEGNA’s cash or leverage levels.
The transaction is expected to be free cash flow and EPS accretive within 12 months and is not expected to have a material impact on TEGNA’s 2024 financials, the company added.
“Octillion is precisely the type of smart bolt-on acquisition we have long considered to accelerate our already successful organically grown Premion business,” TEGNA President/CEO Dave Lougee said.
Tom Cox, president of Premion and SVP/Corporate Development at TEGNA, added, “We built Premion with a local-first mindset from the start. The acquisition of Octillion Media provides us with a proven purpose-built local CTV platform to further enable product innovation, improve operational efficiencies, and drive accelerated growth. Local relevance remains a top advertiser priority, and the addition of Octillion’s technology will enhance our ability to meet ever-evolving customer needs and drive value for our clients.”
Octillion Media was founded in 2019.
“With our shared belief that transparency, quality, and brand safety are the key pillars of success for local Connected TV advertisers, bringing Octillion together with Premion is a natural fit,” said Gabe Greenberg, CEO and co-founder of Octillion. “We’re excited to continue to build and develop our innovative CTV/OTT product offering and activate the platform’s capabilities backed up by quantified business outcomes across Premion’s network of sellers and clients.”
As part of the transaction, Greenberg and all Octillion employees will join the Premion team.
