Integral Ad Science, or IAS, an adtech firm specializing in ad verification and measurement, has been acquired by Canadian private equity group Novacap in a deal worth $1.9 billion, the companies announced today.
IAS operates cloud- and AI-based technology that provides independent verification and measurement of digital ad campaigns across channels and devices. The company has exhibited strong financial performance in recent years, tallying a revenue growth rate of more than 12% over the past three years.
The new arrangement will take IAS private. It had previously been listed on the Nasdaq, trading under the ticker IAS since June 2021.
As part of the agreement, Novacap will acquire all of the outstanding shares of IAS for $10.30 in cash each, representing a premium of about 22% on the company’s Sept. 23 closing share price.
IAS leadership signaled excitement for the backing. Under the ownership of Novacap, CEO Lisa Utzschneider said in a statement, the adtech firm “will have access to new resources to achieve our strategic goals and further build upon the differentiated value,” which she believes will help accelerate the “mission to be the global benchmark for trust and transparency in digital media quality.”
Amid acquisition rumors late last year, IAS raised rates, as ADWEEK previously reported.
Novacap partner Samuel Nasso said in a statement: “We have long admired IAS as an innovator and leader in its industry, with a stellar leadership team and robust AI-first platform for Fortune 500 brands and publishers. We look forward to partnering closely with IAS to accelerate its pace of innovation to deliver even more powerful advertising solutions for customers around the world.”
Novacap primarily focuses on middle-market buyouts of companies across tech, digital, and financial services. Earlier this year, it raised about $1 billion for a fund designated for investments in digital infrastructure.
Now, Vista Equity Partners — which acquired a majority stake in IAS in 2018 — will back out of its investment. The firm’s senior managing director and chair of the IAS board Michael Fosnaugh expressed his support for the change, saying in a statement: “Through our partnership, IAS expanded its AI-powered platform, deepened customer relationships, and scaled into a true category leader. We’re excited for Lisa and her team as they continue that journey with Novacap.”
The acquisition, unanimously approved by the IAS board of directors, is expected to close later this year, pending regulatory approval. The transaction isn’t contingent on any specific financing conditions.