Goldman Sachs Commits Financing for Magnite’s Acquisition of SpotX

Goldman Sachs provided committed financing for advertising platform Magnite’s recent acquisition of SpotX._x000D_
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Magnite entered into a definitive agreement to acquire SpotX from RTL Group for $1.17 billion in cash and stock. Together, Magnite and SpotX will create an independent CTV and video advertising platform in the programmatic marketplace._x000D_
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Magnite plans to finance the transaction with cash on hand, 14 million shares issued to RTL Group and the financing from Goldman Sachs. The company expects the transaction to close in Q2/21, subject to receipt of regulatory approvals and satisfaction of customary closing conditions. Until the transaction closes, both companies will continue to operate independently._x000D_
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Goldman Sachs and LUMA Partners acted as financial advisors to Magnite, with Gibson Dunn providing legal counsel._x000D_
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“Sellers have been looking for a scaled independent alternative to the giant companies who dominate the CTV marketplace,” Michael Barrett, president and CEO of Magnite, said. “The combination of Magnite and SpotX will make this a reality by bringing together the best CTV technologies and teams at a critical time. Ad-supported CTV is just beginning to draw budgets from linear TV, and we will be well-positioned to participate in the strongest segment of industry growth for the foreseeable future.”_x000D_
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“As CTV flourishes and the media industry continues to turn to programmatic, there is a huge opportunity for an independent scaled company to offer the single most comprehensive technology in the market,” Mike Shehan, co-founder and CEO at SpotX, said. “We built SpotX with the mission of becoming the leading global video advertising platform, and our goal is now coming to fruition with Magnite. I am thrilled about what we will achieve together.”_x000D_
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“We are excited about the combination of SpotX and Magnite, two leading CTV advertising providers. This transaction allows for significant value creation and upside potential for the parties, sellers and advertisers in the growing CTV market. We look forward to participating in the future success of SpotX and Magnite as shareholders in the combined entity,” Thomas Rabe, CEO of RTL Group, said.