Millennial Media has agreed to buy Boston-based mobile advertising technology company Nexage for $107.5 million in cash and stock, the companies said Tuesday.
The deal will give Millennial, the Canton-based mobile ad firm, more capabilities using live online marketplaces to connect advertisers with specific demographics of mobile device users. Nexage makes exchanges that allow advertisers to bid on mobile advertising space in real time.
Millennial shares closed up more than 16 percent, at $2.06 per share, on the New York Stock Exchange. The stock has lost about three-fourths of its value over the past year.
Under the terms of the deal, Millennial will pay $22.5 million in cash and $85 million in stock, priced at $2.21 per share. The closing of the deal is subject to approval by Millennial shareholders.
The company did not make an executive available for an interview Tuesday.
CEO Michael Barrett said in a statement the acquisition would help grow its business offering ad space through real-time bidding and maximize ad sales opportunities for publishers of mobile applications and websites. Millennial competes with the likes of Facebook and Google to build an inventory of ad space on smartphone and tablet applications and mobile websites and sell it to advertisers looking to reach users targeted by demographics and location.
“We are looking forward to having the Nexage team join our family as we continue to build the next generation of mobile advertising,” Barrett said.
Nexage is Millennial’s second acquisition of a Boston technology firm in a little over a year. Millennial struck a deal in August 2013 to buy Jumptap for $225 million. Jumptap was one of Millennial’s key competitors among independent mobile ad companies.
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