It is not only cyber. Foreign companies also find Israeli adtech startups attractive for both investments and acquisitions. Taiwanese company GMobi recently announced that it acquired Israeli company MassiveImpact to reinforce its focus on mobile advertising.
Concentrating on Asian markets
Founded in 2007, MassiveImpact initially offered advertising tools, such as SMS and MMS. When smartphones became ubiquitous, the company switched to developing smarter advertising tools adapted to them, and offered a model in which the advertiser paid only when a purchase, download, or incoming call at a company’s sales center was made.
At a fairly early stage, the company decided to concentrate on Asian markets, opening offices in Thailand, Taiwan, and Hong Kong. One of its founders, CEO Sephi Shapira, moved to Taiwan, and he also speaks Mandarin Chinese. In time, the company attracted over 1 billion users from 190 countries, generating about two billion impressions monthly for its advertisers. MassiveImpact, which has been making a profit for several years, currently has 80 employees in its various offices around the world.
Since Shapira and Elad Inbar founded MassiveImpact in 2007, the company has raised $10 million from investors such as Israeli fund Gemini Israel Ventures, SoftBank, Singapore corporation Singtel, and the SOSV accelerator. The company’s customers include Citibank, insurance and financial companies, and more.
GMobi and MassiveImpact did not disclose the acquisition price, but estimates in the Taiwanese media were in the tens of millions of dollars in a deal including both cash and shares. With the help of the acquisition, the Taiwanese company expects to reach markets where it is not yet dominant, such as the Chinese, European, and American markets.
Commenting on the acquisition, GMobi Founder and CEO Paul Wu said, “We’re excited to revolutionize how brands connect with consumers. Combined, GMobi and MassiveImpact’s technologies will transform mobile advertising experiences.”
The acquisition of MassiveImpact marks another milestone in the series of successes and exits in the Israeli adtech industry. Among other things, Inneractive was recently sold to German company RNTS for up to $72 million, Amobee was sold to SingTel for $340 million, and Matomy held its IPO on the London Stock Exchange at a company valuation of $350 million.