Daily News: November 4, 2014

Victory Park Commits Financing to Social Reality

Social Reality announced the acquisition of Steel Media. The company also announced $25 million in committed financing — a $20 million credit facility provided by Victory Park Capital, and $5 million of new equity financing provided by Siskey Capital and other existing investors.

T.R. Winston served as exclusive financial advisor to Social Reality in the acquisition of Steel Media, was sole lead arranger for the term loan financing, and served as agent for the equity financing.

Social Reality utilized a portion of the credit facility, together with the new equity in order to fund the acquisition of Steel Media, continue expansion of Social Reality’s SSP (supply-side platform) and DSP (demand side platform) offerings sold through its proprietary real-time bidding (RTB) exchange, and to provide a strong capital base for growth, working capital and general corporate purposes.

“This strategic acquisition of Steel Media is an excellent fit for Social Reality, creating a powerful force in the digital advertising space. Together, our companies offer superior performance and technology for social data and Internet ad buy-and-sell solutions, delivered to agencies and brands by a seasoned and skilled digital sales team. The combined expertise of our two companies will further enhance the quality of our industry-leading technology and service, with faster delivery for our customers. We welcome the Steel Media team to Social Reality, and we look forward to executing on our combined strategic vision,” said Miglino. “We appreciate the tremendous support from Victory Park Capital as our new strategic financing partner, as well as that of our new and long-term financial partners, and we look forward to their contributions as we continue to grow our business. With the enhanced revenues and positive operating cash flow from this acquisition, combined with increased leverage and ability to reach into new markets, Social Reality is well-positioned for long-term growth.”

“Our team is excited to combine forces with Social Reality. Their SRAX technology platform is the go-to digital ad exchange in the industry. Expanding Steel Media’s product offerings for our customers will drive growth within the combined business,” said Steel. “We’re ready to make our mark, providing digital media solutions that are best-in-class, best-in-reach and best-in-speed. Our combined company now has strengths that span the complete digital spectrum.”

The company’s Social Reality Ad Exchange is an SSP that was launched in early 2013 in order to connect online publishers with demand partners and buyers through advanced programmatic technology and RTB integration. The SRAX platform has gained the reputation for making buying and selling of display, video, mobile and in-app advertising an easier and more efficient experience than other digital ad technologies. Its proprietary RTB management platform integrates social information to optimize client results from the DSP and SSP offerings. Social Reality’s GroupAd product offering is a complementary social management and tracking software focused on delivering brand advocacy and customer loyalty via an integrated dashboard, to launch, distribute and optimize social and digital media campaigns.

Social Reality’s legal advisors were Sidley Austin and Pearlman Schneider. Steel Media’s financial advisor for the transaction was Petsky Prunier Securities and its legal advisor was Lowenstein Sandler. Victory Park Capital’s legal advisor was Katten Muchin Rosenman.

Los Angeles-based Social Reality is an Internet advertising company that provides tools that automate the digital advertising market.

Steel Media provides digital ad inventory.