Nasdaq-listed adtech giant Taboola swoops on the London-listed native advertising specialist after a torrid run for the shares.
Dianomi (AIM: DNM) has agreed to a recommended cash takeover by Nasdaq-listed advertising technology group Taboola, in a deal that could value the AIM-listed native advertising specialist at up to £27m.
Shareholders will be handed 64p in cash for each share they hold, putting an immediate £19m price tag on the business, with a further contingent payment of up to 24p a share on the table, taking the maximum total consideration to 88p. The cash element alone represents a 68% premium to Dianomi's undisturbed share price, and a much steeper roughly 350% premium to its average price over the past six months, a gap that underlines just how far the stock had fallen before the approach.
Dianomi places native advertising for financial, business and lifestyle brands across a network of blue-chip publishers, but its shares have struggled badly since listing, making it a target ripe for consolidation. Taboola, whose platform reaches more than 600 million daily users through partners including Yahoo and NBC News, said Dianomi's specialism in finance-focused advertising was a natural complement to its own scale.
The Dianomi board has unanimously recommended the offer to shareholders, arguing that combining with Taboola's much larger global platform would accelerate the strategy it has been pursuing alone. Given the shares' weak performance since IPO, a firm cash offer at a substantial premium is likely to be welcomed by long-suffering investors.
Not all of the consideration is guaranteed, however. The additional 24p per share hinges on how many of Dianomi's publisher partners migrate onto Taboola's standard commercial terms and the revenue those relationships subsequently generate, meaning the final payout could fall well short of the maximum 88p headline figure. Attention now turns to the formal offer documentation and the timetable for shareholder approval.
This report is based on Dianomi’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Diggity Marketing on Unsplash.
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