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Magnite to Buy SpotX in $1.17 Billion Cash-and-Stock Deal

· 02/04/2021 23:27

04:23 AM EST, 02/05/2021 (MT Newswires) -- Magnite Inc. (MGNI), an advertising platform, said Friday it has agreed to buy SpotX, a connected TV and video advertising platform, from RTL Group in a cash-and-stock deal valued at $1.17 billion.

Under the deal, Magnite will pay $560 million in cash and issue 14 million of its common share to RTL Group. The deal, which is slated to close on Q2, will be funded with cash on hand, as well as committed financing from Goldman Sachs.

The company said it expects more than $35 million in run-rate operating cost synergies, with more than half expected to be realized within the first year of combined operations, according to a statement.

Magnite also reported preliminary Q4 GAAP revenue of $82 million, up 20% on a pro forma basis from a year earlier, with connected TV revenue pegged at $15.3 million.

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