Teads (TEAD) Acquisition presentation summary

Transaction overview and strategic rationale

• Outbrain acquired Teads, closing February 3, 2025, forming a leading omnichannel advertising platform spanning 50+ markets.

• The combined entity offers end-to-end solutions for the entire marketing funnel, leveraging direct relationships with over 20,000 advertisers and 8,000+ media owners.

• Transaction consideration included $625m in cash and 43.75m Outbrain shares, with Altice owning 47% of the combined company and appointing two board directors.

• Leadership includes David Kostman as CEO, with Teads' co-CEOs as Co-Presidents and Chief Business Officers.

• The company remains US-headquartered and Nasdaq-listed, targeting significant realized synergies by 2026.

Financial highlights and synergy potential

• Combined 2024 expected ad spend is ~$1.7bn, with Sep-2024 LTM Ex-TAC Gross Profit of $647m and Adj. EBITDA of $257m.

• 2024E Ex-TAC Adj. EBITDA margin projected at ~37% post-synergies, with FCF conversion of ~68%.

• $60m in cost reductions planned, mostly headcount-related, with 70% executed in the first month post-close.

• Expected 2026 realized synergies are $65–75m, driven by operational streamlining, network optimization, and cross-sell opportunities.

• Conservative net leverage of ~2.1x and strong cash flow generation with $174m+ LTM FCF.

Platform capabilities and market positioning

• The combined platform delivers full-funnel, omnichannel advertising across web, mobile, app, and CTV, reaching 2.2 billion consumers globally.

• Over 90% open internet audience reach, with exclusive access to premium publishers and unique ad placements.

• Advanced targeting leverages proprietary data, contextual signals, and AI for optimized outcomes without reliance on cookies.

• CTV and Omnivideo solutions have driven 3x revenue growth in 2024, with over 1,000 campaigns and expanded native ad formats.

• Creative capabilities include 70,000 unique creatives annually, delivering up to 49% higher attention for optimized formats.