DoubleVerify Holdings, Inc. (DV) inked an all-cash deal to acquire Germany-based Meetrics GmbH, a European ad verification company. Shares jumped 5% on the news, closing at $35.24 on August 30. The financial terms of the deal have not been disclosed but the acquisition is expected to close in the third quarter of 2021.
DoubleVerify is a digital media measurement and analytics software company with hundreds of Fortune 500 companies employing its unbiased data and analytics services to maximize return on their digital advertising investments. (See DoubleVerify stock charts on TipRanks)
Meetrics offers comprehensive media quality measurement and solutions across viewability, fraud, brand safety, and suitability, with more than 80 customers across 23 European countries. To add to that, Meetrics is the only European company to have established official ad verification measurement partnerships with the traditionally “walled gardens,” including Google and Facebook.
Commenting on the deal, Mark Zagorski, CEO of DoubleVerify, said, “Our strategy in support of this mission is to verify everywhere – across channels, formats, platforms, and geographies. The Meetrics transaction fully supports this approach and bolsters our operating footprint in EMEA, adding experienced sales, product, and engineering teams and tenured customer relationships that will continue to help accelerate the growth of our international business.”
Dr. Philipp von Hilgers, Co-founder and Managing Director of Meetrics commented, “Integrating Meetrics’ technology and expertise with DV’s global platform will accelerate our efforts to power media quality and performance for leading brands in the region.”
Following the acquisition news, William Blair analyst Arjun Bhatia maintained a Buy rating on the stock and said, “In our view, bringing Meetrics in-house provides the company with a presence in and knowledge of local markets that DoubleVerify can use to better meet the needs of its existing multinational customers to drive transaction volume to its platform and to attract new business from European advertisers.”
Overall, the analyst notes that DoubleVerify is well-positioned to sustain 30%-plus growth rates with its improving competitive position and continuous product innovation. Furthermore, the Meetrics acquisition is viewed as a strategic avenue for DV to drive revenue growth and expand its international presence.
Based on 4 Buys and 1 Hold, DV stock commands a Strong buy consensus rating. The average DoubleVerify price target of $40.50 implies 14.9% upside potential to current levels. Shares have lost 2.1% since their listing on April 21, 2021.
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