The Cisco and Deutsche Telekom-backed interactive video advertising software provider will acquire an NYSE spot after the deal, valuing it at a $1.3bn pro-forma equity valuation.
InnoVid, a US-based video marketing technology provider backed by networking equipment manufacturer Cisco and telecommunications group Deutsche Telekom, has agreed a reverse takeover at an implied valuation of roughly $1.3bn.
The company is joining forces with special-purpose acquisition company Ion Acquisition Corp 2, which floated on the New York Stock Exchange (NYSE) in a $253m initial public offering in January 2021.
Life insurance provider Phoenix Insurance and financial services and investment group Fidelity Management and Research are co-leading a $150m private investment in public equity financing in connection with the deal that includes Baron Capital Group, Vintage and funds affiliated with Ion.
Founded in 2007, InnoVid provides a data-equipped interactive video tool which allows organisations to advertise their products and services on connected television (CTV) with personalised media. It has 12 offices across the Americas, Europe and Asia-Pacific regions.
The company has secured about $83m in funding, having most recently closed a $30m round in early 2019 featuring investment bank Goldman Sachs’ Private Capital Investing unit.
T-Venture, the former corporate venturing subsidiary of Deutsche Telekom since rolled into Deutsche Telekom Capital Partners, backed a $4.1m series A round for InnoVid in 2010, investing alongside Genesis Partners, the latter having provided $3m in seed funding two years before.
Both investors took part in a $9.5m series B round for the company in 2011 that included Sequoia Capital. The three then joined Vintage Investment Partners in a $11m series C round two years later.
InnoVid completed a $10m series D round in 2015 with contributions from T-Venture, Genesis Partners, Sequoia Capital and Cisco Investments, the corporate venturing arm of Cisco.
All the series D backers returned to provide $15m later that year together with Vintage Investment Partners and Newspring Capital, alongside $12.5m in debt financing supplied by Silicon Valley Bank and TriplePoint Capital.
Zvika Netter, co-founder and chief executive of Innovid, said: “Innovid is entering an exciting new chapter of growth as a public company, a major milestone that corresponds with rising adoption and demands for streaming television.
“The rapid shift of viewership from linear TV to streaming has driven marketers to make CTV a strategic investment focus. Our technology was purpose-built for TV which has allowed us to win in the marketplace and contributed to our rapid growth to date.”
