AT&T Inc. (NYSE: T) is further expanding its massive telecom empire with a new acquisition to kick off the week. The company said that it has entered into a definitive agreement to acquire AppNexus, a technology company that operates a leading global advertising marketplace and provides enterprise products for digital advertising, serving publishers, agencies and marketers
Although AT&T did not disclose the value of the transaction, the Wall Street Journal reported last week that the company was in talks to buy AppNexus for about $1.6 billion.
Through this proposed acquisition of AppNexus, AT&T is expecting to accelerate the growth of its advertising platform and strengthen its leadership in advanced TV advertising. In a sense, this acquisition helps AT&T broaden its footprint globally, expanding into Asia-Pacific, Australia, Europe and Latin America.
The transaction, which is expected to close during the third quarter of 2018, is subject to customary closing conditions.
Brian Lesser, CEO of AT&T advertising and analytics, commented:
Ad tech unites real-time analytics and technology with our premium TV and video content. So, we went out and found the strongest player in the space. AppNexus has scale of infrastructure, advanced technology and diverse talent. The combination of AT&T advertising & analytics and AppNexus will help deliver a world-class advertising platform that provides brands and publishers a new and innovative way to reach consumers in the marketplace today.
Shares of AT&T were last seen at $31.60, with a consensus analyst price target of $37.43 and a 52-week trading range of $31.17 to $39.80.