Content recommendation platform Outbrain has announced that it is acquiring contextual video technology company video intelligence AG (vi) for $55 million.
vi’s contextual technology places relevant video beside articles to allow publishers to effectively monetise content and drive user engagement.
Outbrain’s acquisition of vi is the company’s first since it had its initial public offering back in July. Outbrain raised $160 million in its IPO. The decision to go public came after a halted merger with rival content recommendation platform Taboola in 2020.
“vi fits perfectly into Outbrain’s core strategy of providing media owners with technology to enhance user engagement and monetization through relevant content and ads,” said David Kostman, co-CEO of Outbrain.
The contextual video platform works with more than 1100 media owners, such as IDG and Der Spiegel.
vi has also recently made its entry into the CTV market, announcing a contextual solution for the medium in July of this year. The Swiss company has partnered with CTV providers like Samsung TV+ on the contextual offering.
“The combination with vi will allow us to deepen our partnership with media owners, providing mid- and top-of-article video solutions. It will also expand our addressable market, introducing high-quality in-stream video inventory to support our brand advertisers,” added Yaron Galai, co-CEO of Outbrain.
The $55 million acquisition will be funded through $46.75 million of balance sheet cash and 412,500 Outbrain shares. It’s expected that the acquisition will be completed in Q1 2022.
“We are delighted to join Outbrain, and become a core part of creating the leading video engagement platform,” said Kai Henniges, co-founder and CEO of vi.