Tabu, a provider of digital advertising space, which often appears at the bottom of websites, is making its way to the stock exchange. The company announced on Monday that it would do so through the preferred public vehicle of our age: a Special Purpose Acquisition Company (SPAC).
Taboola’s current business will be parked at SPAC, called Existing Stock Ion Acquisition Corp 1 Ltd (NYSE: IACA), Thus becoming a publicly traded company.
Tabulla said the transaction was expected to close in the second quarter. The resulting entity will trade under the current name, and its ticker symbol should be changed to TBLA.
Tunola stated that its merger with ION would amount to a total of $ 545 million between the funds held by ION in trust and investments by third parties. According to Tabula, this merged entity is valued at approximately $ 2.6 billion. The company said it would invest more than $ 100 million to research and develop growth opportunities. It did not provide details about other spending targets.
As a privately held business, Tabulla does not provide a large amount of details about its finances. In an ongoing public announcement on its website, it stated that its revenue was $ 379 million in 2020, excluding the cost of traffic acquisition. Operating profit came to $ 34 million, and adjusted EBITDA (income before income, taxes, depreciation and amortization) above $ 100 million. A bottom line figure was not provided.
In his words, Tabulla “enables digital property owners to use the value of AI-driven recommendations and provides advertisers a way to effectively access users in the open web.”
It estimates the scope it describes as a “highly fragmented advertising market in the open web”, which totaled nearly $ 64 billion last year.