TripleLift Acquired by Vista Equity Partners
The following email was sent to all TripleLift employees immediately following an all-hands meeting where Co-Founder and CEO Eric Berry announced the acquisition of the company by Vista Equity Partners.
TripleLift announced today that a majority stake of the company will be acquired by Vista Equity Partners, a leading private equity firm focused on software, data and technology-enabled businesses. Vista’s involvement will accelerate global growth and further drive product innovation for TripleLift.
This is one of the largest transactions in the history of ad tech and a wonderful outcome for our company, our shareholders and our employees. This alignment will also create positive effects for our customers and partners as it provides us with the ability to service them in an increasing number of ways.
Let me provide some details about this agreement, explain why we entered into it, articulate what it means to our future and share what comes next.
What are the details of this investment?
TripleLift has been acquired by Vista Equity Partners. This should be a moment of pride for every TripleLifter past and present. We started the business in 2012 with a central idea to bring Native ads to the open web. Through your hard work, we have delivered on that original thesis, expanded to become a large and well regarded programmatic exchange, and have begun commercializing a truly differentiated CTV business. These three chapters of our company’s history – and our ability to demonstrate proficiency in each one of them – is what created the value leading to this transaction. TripleLift and Vista will be working together to evaluate key drivers for successful growth moving forward.
Why did we make this decision?
TripleLift has grown over 70% annually since 2015, and we are committed to building on our leadership position going forward. This acquisition ensures that we are well capitalized to follow through on our strategic plan:
- Maintaining our leadership position in Native
- Expanding our position in programmatic video where we are a Top 3 provider
- Catalyzing our opportunity in CTV
- Further expanding into priority international markets across Europe & Asia
Vista is a value-added investor with an extensive track record of helping companies achieve excellence by contributing professional expertise and proven best practices. They will be a powerful resource as we move into this next chapter.
What does the acquisition mean?
At the highest level, let me start with the old adage: “the more things change, the more they stay the same.” Vista made this investment in TripleLift for the growth opportunity ahead of us. They bought us for our strategy, our priorities, our brand and our values. None of that changes. As we always have, we will revisit our plans as market circumstances dictate, but we will now have those discussions with Vista instead of our current board of directors.
Mike Fosnaugh, the Co-Head of the Flagship Fund at Vista remarked to me the other day: “Your team has built something extraordinary. Our goal is to help you reach the goals we’ve been discussing. We will help you grow into your ambitions, not change what you’ve built.”
What happens next?
We anticipate that the deal will officially close in Q2 2021, once government regulators have had a chance to review the acquisition. Until and beyond that point, it is business as usual. We’ve got an industry to keep changing.
Thanks to everyone on this team for living our values and driving us to this day.
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AdTech Leader TripleLift Announces Majority Investment from Vista Equity Partners
Partnership to Accelerate Global Product Expansion and Innovation in CTV
TripleLift, one of the largest advertising technology platforms in the world, announced today it has signed a definitive agreement to receive a majority investment from Vista Equity Partners. Vista, a leading global investment firm focused on enterprise software, data and technology-enabled businesses, will help drive further innovation across TripleLift and accelerate global growth.
“We have developed into a leader in the advertising technology space and are excited about our next chapter,” said Eric Berry, Co-Founder and CEO of TripleLift. “When looking for an investment partner, we placed a premium on a deep understanding of ad tech and a willingness to lean into developing our portfolio of innovative, high-growth products. Vista is that partner.”
Founded in 2012, TripleLift is driving the next generation of programmatic advertising by inventing new ad formats and building two-sided marketplaces that deliver monetization to publishers around the world. The company rose to prominence as the leader in Native programmatic advertising, expanded its offerings to display and video, and is now commercializing breakthrough products in Connected TV. TripleLift works with over 80% of the comScore 100 publishers, 100% of the Top 20 Demand Side Platforms (DSPs) and 100% of the AdAge Top 100 advertisers. Last year, TripleLift handled over 40 trillion ad transactions across desktop, mobile and connected television.
“TripleLift is a next generation ad tech company that has successfully identified and developed multiple new markets since its inception,” said Michael Fosnaugh, Co-Head of the Vista Flagship Fund and Senior Managing Director. “In each case, they have created unique value to an entire ecosystem of companies, including brands, publishers, and partners, and we are thrilled to be working with Eric and the team to further scale their business.”
“Vista is pleased to partner with TripleLift and we have a tremendous runway for growth,” said Rod Aliabadi, Managing Director at Vista Equity Partners. “We look forward to continued market leadership in programmatic, further catalyzing our opportunity in CTV and building upon our expansion into priority international markets across Europe and Asia.”
The transaction is expected to close in the second quarter of 2021. Eric Berry will remain as CEO and will continue serving on the Board of Directors. True Ventures and Edison Partners, two early investors in TripleLift, will remain invested in the company.
Centerview Partners LLC is serving as exclusive financial advisor to TripleLift, and Goodwin Procter LLP and Reitler Kailas and Rosenblatt LLC are serving as legal counsel. JP Morgan is serving as financial advisor to Vista, and Kirkland & Ellis LLP is serving as legal counsel.
About TripleLift
TripleLift, one of the fastest-growing ad tech companies in the world, is a technology company rooted at the intersection of creative and media. Its mission is to make advertising better for everyone— content owners, advertisers and consumers—by reinventing ad placement one medium at a time. With direct inventory sources, diverse product lines, and creative designed for scale using Computer Vision technology, TripleLift is driving the next generation of programmatic advertising from desktop to television. As of January 2021, TripleLift has recorded five years of consecutive growth of greater than 70 percent. TripleLift is a Business Insider Hottest AdTech Company, Inc. Magazine 5000, Crain’s New York Fast 50, and Deloitte Technology Fast 500. Find more information about how TripleLift is shaping the future of advertising at triplelift.com.
About Vista Equity Partners
Vista is a leading global investment firm with more than $73 billion in assets under management as of September 30, 2020. The firm exclusively invests in enterprise software, data and technology-enabled organizations across private equity, credit, public equity and permanent capital strategies, bringing an approach that prioritizes creating enduring market value for the benefit of its global ecosystem of investors, companies, customers and employees. Vista’s investments are anchored by a sizable long-term capital base, experience in structuring technology-oriented transactions and proven, flexible management techniques that drive sustainable growth. Vista believes the transformative power of technology is the key to an even better future – a healthier planet, a smarter economy, a diverse and inclusive community and a broader path to prosperity. Further information is available at vistaequitypartners.com.
Vista on LinkedIn @Vista Equity Partners, and on Twitter @Vista_Equity.
Black Billionaire Robert Smith, “CURRENT NET WORTH, US $7.05 billion (March 2021)”, Acquires ,Majority Stake of Ad-Tech Giant TripleLift
A Wednesday press release announced the ad-tech leader’s $1.4 billion investment from Smith’s global investment firm, Vista Equity Partners.
“We have developed into a leader in the advertising technology space and are excited about our next chapter,” Eric Berry, co-founder and CEO of TripleLift said in the statement. “When looking for an investment partner, we placed a premium on a deep understanding of ad tech and a willingness to lean into developing our portfolio of innovative, high-growth products. Vista is that partner.”
Smith became a trending topic in 2019 when he pledged to cover $34 million in student loan debt for the entire graduating class of Morehouse College. With a $6 billion net worth, as noted by Forbes, Smith’s Vista Equity Partners has over $50 billion in assets and is regarded as one of the best-performing private equity firms.
“Vista is pleased to partner with TripleLift and we have a tremendous runway for growth,” said Rod Aliabadi, Managing Director at Vista Equity Partners. “We look forward to continued market leadership in programmatic, further catalyzing our opportunity in CTV and building upon our expansion into priority international markets across Europe and Asia.”
Just last year, TripleLift handled over 40 trillion ad transactions with placements across desktop, mobile, and connected television, the statement says. The ad-tech company was founded in 2012 by Ari Lewine.
“TripleLift is a next generation ad tech company that has successfully identified and developed multiple new markets since its inception,” said Michael Fosnaugh, Co-Head of the Vista Flagship Fund and Senior Managing Director. “In each case, they have created unique value to an entire ecosystem of companies, including brands, publishers, and partners, and we are thrilled to be working with Eric and the team to further scale their business.”
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The Big Story: Why TripleLift Went With Vista, And How It Will Crack CTV
This week, Vista Equity Partners said it would acquire a majority stake in TripleLift, reportedly investing $1.4 billion. The deal is expected to close in Q2.
$1.4 billion is a big chunk of change – and a big story. In this episode, the AdExchanger team welcomes Ari Lewine, TripleLift cofounder and chief strategy officer, to talk about why TripleLift went with Vista as opposed to other, more disruptive exits.
Now that the native ad exchange is under Vista’s umbrella – the same firm that took in Mediaocean, Integral Ad Science, and Marketo (which it famously flipped) – what’s next for TripleLift? Why would a company that’s already run pretty efficiently – focused on profitability and having raised only $16 million – decide to exit via private equity?
Post-acquisition TripleLift will be able to buy companies itself, and improve its footprint both globally and in CTV. The big screen is an area where Lewine is convinced TripleLift can dominate. With so many ad tech companies already establishing themselves in TV, either through acquisition or wheeling and dealing (The Trade Desk, Magnite, Dataxu, Beeswax), how does TripleLift expect to fit in?
Lewine discusses the strategy and TripleLift’s unique native play in CTV.
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Programmatic platform TripleLift sells majority stake for reported $1.4B
- TripleLift, a programmatic platform focused on native advertising, agreed to sell a majority interest to Vista Equity Partners, the private-equity firm that has invested in a number of marketing-related companies, included Mediaocean and Integral Ad Science. Terms of the deal weren’t disclosed in an announcement, but the transaction was valued at more than $1.4 billion, Ad Age reported, citing people familiar with the matter.
- With Vista’s backing, TripleLift plans to expand its business in programmatic video and connected TV (CTV), along with a bigger geographic push into Europe and Asia. TripleLift’s business has grown more than 70% a year since 2015, and it handled more than 40 trillion ad transactions on desktop, mobile and CTV last year, per an announcement.
- The TripleLift deal comes as mergers and acquisitions activity picks up in the marketing space, including strategic investments by corporations in ad-tech companies. TripleLift expects the deal to close in the second quarter of this year, per its announcement.
TripleLift’s sale to Vista Equity Partners for a reported $1.4 billion is notable not only for the size of the transaction, but also what it means for TripleLift’s independence amid the current wave of consolidation in the ad-tech industry. Deal activity is picking up as the global economy continues to recover from the pandemic recession, driving a rebound in ad spend.
However, ad-tech companies also face the uncertainties of stricter data-privacy laws and the move by technology giants like Google and Apple to give consumers more control over how they share personal information online. It’s still too early to tell how the limitations on online audience tracking will affect the ability of marketers to retarget consumers with advertising, but the media, marketing and ad-tech industries are preparing for that eventuality.
TripleLift works with more than 80% of the top 100 publishers measured by ComScore, all of the top 20 demand side platforms (DSPs) and every advertiser in Ad Age’s top 100 ranking. Eric Berry will stay as chief executive of TripleLift, and serve on its board. True Ventures and Edison Partners, two early investors in TripleLift, also will remain invested in the company, according to its announcement.
“TripleLift is a next generation ad tech company that has successfully identified and developed multiple new markets since its inception,” Michael Fosnaugh, co-head of the Vista Flagship Fund and senior managing director, said in the announcement. “In each case, they have created unique value to an entire ecosystem of companies, including brands, publishers, and partners.”
Some companies in the ad-tech industry are merging to build greater scale or to round out their capabilities. Magnite, the sell-side platform formed last year in the wake of the Rubicon Project-Telaria merger, last month bought rival SpotX for $1.17 billion in cash and stock from RTL Group. The same month, data connectivity platform LiveRamp completed its deal to buy DataFleets, a cloud platform that lets businesses protect their proprietary data, for $68 million, according to a quarterly filing. In addition, programmatic platform District M merged with ad exchange Sharethrough to expand their omnichannel scale, according to an announcement. Brand performance ad platform Verge Group acquired Nexstar’s digital video ad-tech platform, formerly known as LKQD, for an undisclosed sum in January.
In addition to these mergers, consumer-facing marketers are making strategic acquisitions of ad-tech companies to improve their in-house capabilities around marketing, advertising and e-commerce. Yum Brands, the owner of KFC, Taco Bell and Pizza Hut, this month bought the artificial intelligence (AI) business of performance marketing firm Kvantum in to “scale and fast-track” its data strategy. To expand its fledgling retail media network, Walmart acquired the technology and IP behind Thunder, an ad-tech solution focused on creative automation. Sportswear giant Nike last month bought data integration platform Datalogue to scale its data-driven processes. These deals indicate that M&A activity is likely to continue as brands build out their first-party data about consumers to hone their marketing activities.
American investor, inventor, engineer, philanthropist, entrepreneur. He is the Founder, Chairman and CEO of Vista Equity Partners, focused on investing and partnering with leading enterprise software companies.
Robert F. Smith was born to two working-class parents in a predominantly African American, middle-class neighborhood in Denver, Colorado. From an early age, his parents stressed the importance of giving back and supporting his community. He first learned that everyone had a role to play in creating a better world from watching his parents, who donated their limited resources to charities on an ongoing basis, no matter what was happening in their personal lives.
Smith earned a degree in chemical engineering from Cornell University. After graduating, he began working in industry in Applied Research and Development and received two US and two European patents and numerous awards. He graduated with honors from Columbia Business School and entered the investment banking in Mergers & Acquisitions for Goldman Sachs in New York City and later San Francisco. To empower technology companies in the enterprise software market, Smith launched Vista Equity Partners, a global investment firm, in 2000. Today, Smith is Vista’s Chairman and CEO. Under his leadership, the firm’s portfolio has grown to include some of the world’s leading enterprise software companies.
Throughout his life, Smith’s commitment to philanthropy and equity has never wavered, and finding ways to make a difference in the communities where he lives and works is central to his character and approach to life. During his 2019 commencement address at Morehouse College, a historically Black institution, Smith surprised the graduating class by pledging to pay off the entire class’ student loan debt — a $34 million gift that helped nearly 400 graduates. He is also a major donor to the National Museum of African American History and Culture, the Chairman of Carnegie Hall, and the Chairman of Robert F. Kennedy Human Rights, among many others.
We will only grasp the staggering potential of our time if we create on-ramps that empower all people to participate, regardless of background, country of origin, religious practice, gender, or color of skin.
– Robert F. Smith
About Vista Equity Partners
Robert F. Smith is the Founder, Chairman and CEO of Vista Equity Partners, a leading global technology investment firm.
Vista Equity Partners (Vista) is an American investment firm focused on financing and forwarding software, data and technology-enabled startup businesses. Vista has invested in hundreds of companies, including Misys, Ping Identity, and Marketo.
The company has offices in several cities, including Austin, Texas; New York, New York; and San Francisco, California.
Philanthropy
Robert F. Smith prioritizes making a difference in the communities where he lives and works. In particular, his philanthropy honors the sacrifices and contributions of his parents, grandparents and African American ancestors who he says paved the way for his success. Over the years, Smith has made major contributions to the National African American History Museum, Carnegie Hall, Robert F. Kennedy Human Rights, Cornell University, Morehouse College and many other organizations.
In addition to his personal philanthropy, Smith is the founding director and President of the Fund II Foundation, a charitable organization making grants to support a broad range of organizations. In 2017, Smith became the first African American to sign the Giving Pledge — a commitment to donate a majority of his net worth during his lifetime to charitable causes.
Sometimes we think it’s just the Giving Pledge-kind of people making a difference, but it’s also individuals who may not have great wealth but who give generously of their time and resources.
— Robert F. Smith
Watch the latest videos of Robert F. Smith’s speeches, TV interviews, and other appearances.
Billionaire investor Robert Smith on providing financial help for minority-owned small businesses
Billionaire investor and CEO of Vista Equity Partners Robert Smith joins CBS This Morning to discuss the Paycheck Protection Program and what his company is doing to help minority-owned small businesses.
Robert F. Smith (investor)
Robert Smith
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|
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Born |
Robert Frederick Smith
December 1, 1962 |
Education | Cornell University (BS) Columbia University (MBA) |
Net worth | US $7.05 billion (March 2021) [1] |
Spouse(s) |
Suzanne McFayden
(m. 1988; div. 2014) |
Children | 7[2] |
Robert Frederick Smith (born December 1, 1962) is an American businessman, philanthropist, chemical engineer, and investor. He is the founder, chairman, and CEO of private equity firm Vista Equity Partners.
Other achievements
In 2014, Smith became the founding director and president of the Fund II Foundation, which has invested in organizations such as Cornell, the National Park Foundation, and Susan G. Komen. Also in 2014, Smith received an honorary doctorate from Huston-Tillotson University.
The Fund II Foundation has also supported education organizations including NAF and UNCF. Fund II’s support of the National Park Foundation allowed the organization to buy Martin Luther King Jr.’s home for preservation in 2019.
In 2015, Smith sponsored the college education of all returned Boko Haram girls.
Smith has also served as the chairman of Robert F. Kennedy Human Rights, on the board of overseers of Columbia Business School, as a member of the Cornell Engineering College Council, on the Cornell University Tech Board, and as a Trustee of the Boys & Girls Clubs of San Francisco. He has donated to The Sphinx Organization, which supports diversity in the arts.
Smith became the board chairman of Carnegie Hall in 2016, the first African American to hold that position.
Also that year, Cornell University named the Robert Frederick Smith School of Chemical and Biomolecular Engineering after him, following a donation. He was later recognized as a distinguished alumnus by the college.
Smith was named in The Chronicle of Philanthropy‘s “Philanthropy 50” in 2017. In May 2017, The Giving Pledge announced that Smith had joined as its first African-American signatory. That year, Smith was awarded an honorary doctorate from the University of Denver.
In 2018, Fund II Foundation gave a $2.7 million grant to the Louis Armstrong House Museum, and Smith has served as a board member since. This grant helped digitize Armstrong’s collection to make it available to the public.
In 2018, Smith was the largest individual donor at the City of Hope Gala, which funds prostate cancer treatment and breast cancer research for black men and women. That same year, Smith donated $2.5 million to the Prostate Cancer Foundation to advance prostate cancer research among African-American men. Also in 2018, Smith donated $1 million to the Cultural Performance Center at the Denny Farrell Riverbank State Park in Harlem, which was later renamed the Robert Frederick Smith Center for Performing Arts.
Smith has received the Candle in Business and Philanthropy Award from Morehouse College, the International Medical Corps Humanitarian of the Year Award, Ebony’s John H. Johnson Award, and the Congressional Black Caucus Foundation‘s Chairman’s Award, among others. He was awarded an honorary doctorate of International Affairs from American University‘s School of International Service and an honorary doctorate from Morehouse College.
In May 2019, while at Morehouse College to receive an honorary doctorate and deliver the commencement address, he announced that he and his family would pay off the entire student loan debt of the 2019 Morehouse College graduating class of 396 students. He had previously donated $1.5 million to the school in January 2019, to be used for scholarships and a park.
In October 2019, Smith received the Carnegie Medal of Philanthropy, which is given to individuals who have donated private wealth to the public.[61] Smith was also inducted into the Texas Business Hall of Fame as a Class of 2019 Legend.[62] In April 2020, Governor Greg Abbott named Smith to the Strike Force to Open Texas – a group “tasked with finding safe and effective ways to slowly reopen the state” amid the COVID-19 pandemic.