Singapore-based mobile advertising company Smaato, backed by media company Singapore Press Holdings, is set to be acquired by marketing company Spearhead Integrated Marketing Communication for $148m.
Spearhead will conduct the transaction through an unnamed M&A fund invested by an undisclosed, wholly-owned subsidiary. The deal is subject to approvals.
Founded in 2005, Smaato operates a real-time ad bidding exchange for mobile websites and apps. The company also offers a supply-side platform to manage ad inventory.
Smaato is planning to use the acquisition as an opportunity to expand into China, grow further and to look into acquiring startups and making other strategic investments following the transaction.
Smaato raised $47m in funding from investors including Singapore Press Holdings, which participated in a $25m series E round in 2014. The series E round was led by Aeris Capital, with participation from Singapore state-backed fund EDBI.
EDBI and Aeris also invested $7m in series C capital in 2011.
Ragnar Kruse, chief executive and co-founder of Smaato, said: “This collaboration creates enormous new opportunities for both partners. Spearhead brings to Smaato not only its expertise and a trusted partnership but opens up the Chinese market for us.
“Smaato allows Spearhead to expand very quickly outside of China. Together, we unlock potential for enormous growth and exciting possibilities that neither business could achieve alone.”