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MiQ mulls M&A moves with new PE-backers

Bridgepoint Group has been confirmed because the latest private equity partner of MiQ because the U.K.-based ad tech firm evaluates potential consolidation moves to either bolster its international footprint or broaden its operational expertise.

In a statement, MiQs leadership emphasized that they can remain with the business following deal, which saw Jefferies Group become financial advisor, since it pursued its next growth phase.

The precise terms of the offer were not offered however they are understood to value MiQ at approximately $900 million.

Bridgepoints proven history of innovative and scalable investments matches our ambition to go to another chapter to provide for the people and clients, said Gurman Hundal, MiQs cofounder and now its executive chairman.

Talking to Digiday in July, Lee Puri, fellow cofounder of MiQ, explained the way the companys months-long seek out new PE-backers will be influenced by finding an outfit that has been aligned with this values.

Listed on the London STOCK MARKET, Bridgepoint has had over from ECI Partners in a move that saw the latter PE firm generate an ROI greater than six times its 2017 investment in MiQ, and something that values the ad tech outfit at near $1 billion.

Charles Welham, a London-based director at Bridgepoint, highlighted MiQs notable growth rate its 2021 revenue grew 37.7% to near $465 million generating $45.4 million in profit and how it aims to improve its expansion using its international expertise.

Sources with direct understanding of the pairs plans for further expansion told Digiday that MiQ is currently considering inorganic growth opportunities with potential moves for companies in the regions of contextual advertising and CTV among its considerations.

They [MiQ] haven’t done it before as theyve grown well inorganically, but theres prospect of consolidation as theres plenty of point solutions, especially in the U.S., thats one area where theyll be hanging out, said one source who requested anonymity because of potential ongoing inquiries.

Other potential moves include possible mergers and acquisitions that could increase MiQs international footprint with continental Europe and APAC thought as potential regions of interest, another source added.

PE firms have emerged because the primary drivers of M&A in ad tech, a sector of the media market that saw a glut of public listings in 2021 but has since abated. This slowdown in initial public offerings and mergers with special purpose acquisition companies has been because of mix of macroeconomic factors in addition to uncertainty over issues such as for example how internet marketing will operate amid heightened privacy laws.

Forget about dumb money?

However, Wayne Blodwell, CEO of consultancy firm TPA Digital described how these concerns haven’t dampened the interest of several PE firms. Actually, talking to Digiday, he noted a rise in the amount of inbound inquiries from PE outfits over the last 12 to 18 months.

Digital advertising is really a fast-growing space thats reasonably immature rather than heavily bound by regulation, and theres so much change going on within it that it still presents opportunities, he said.

Blodwell added, The type of conversations I’ve in this space have a tendency to look at emerging opportunities and just how much room for growth there’s outside the big companies like Google and The Trade Desk. People utilize the term dumb money but maybe thats a thing that was the case in the past from a large amount of conversations that Ive had lately, theyre surprisingly up to date.

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