Gravity4’s proposed SEK 565 million (£43.4 million) deal for performance marketing network Tradedoubler is off, the acquiring company’s CEO informs PerformanceIN.
It’s understood that a senior member of the Tradedoubler board was unhappy with continuing the dialogue which led to last week’s offer of SEK 282 million (£21.6 million) being doubled through the offering of Gravity4 stock.
Gurbaksh Chahal, CEO at the ad tech firm, said: “The initial desire was to transform them, and that would have happened through the data and the relations they have with partners.
“Our logic was that they have the demand-side relationships; they have the data. So why not go ahead, intertwine that and make it part of our marketing cloud? And at the same time, it would make a great entry into Europe for us.
“The fact is that it won’t be happening right now for us. We’ve rescinded the offer.”
Chahal says the company will now be looking elsewhere for its 10th acquisition, which will arrive in the coming weeks.
Offer rescinded
Gravity4’s attempt to acquire Tradedoubler had been subject to much discussion around the performance marketing community.
Adding to the questions over the bid’s authenticity was Gravity4’s $350 million offer for programmatic media firm Rocket Fuel, made just days before the news of its interest in Tradedoubler, which was turned down on the grounds of a lack of credibility.
But Chahal insists that initial discussions between Gravity4 and members of the Tradedoubler board had been positive, and that a potential deal would have worked in the interests of both parties.
“We made a generous offer that at first, was made to create a dialogue, whereas the second was going to benefit shareholders through what Gravity4 and Tradedoubler could do together as a combined entity,” he commented.
“We’re not in any shape or form being hostile, and we’re not in the business of being hostile, and we’re big believers in keeping people long term at the company.”
The CEO said that Gravity4 would remain on task to expand its Marketing Cloud platform across Europe.
Branded as a ‘high-frequency marketing operating system’, the Gravity4 Marketing Cloud offers an umbrella solution for marketers looking to launch programmatic, native, search and social campaigns across the web.