French AdTech Firm Equativ Joins Forces with Sharethrough in Merger

Montréal-headquartered Sharethrough and Paris-based Equativ have announced a strategic merger aimed at creating one of the largest global advertising marketplaces. This merger marks the consolidation of two prominent adtech companies, positioning them to offer a vertically integrated alternative to the dominant "walled gardens" in the digital advertising industry.

The merger underscores Sharethrough's trajectory since its inception through a previous merger in early 2021. Originally, Sharethrough itself was formed from the combination of Montréal-based adtech startup District M and San Francisco's Sharethrough. District M, founded in 2013, specialized in programmatic advertising, which automates ad placement based on user data. The startup had secured a significant $12 million Series A funding round in 2019, backed by Investissement Québec and Fonds de solidarité FTQ, underscoring its growth and potential in the adtech sector prior to the merger.

Following the merger, Sharethrough continued to expand its footprint and capabilities in the advertising technology landscape. The firm's decision to merge with Equativ now aims to capitalize on synergies between their respective technologies and market positions. Although the financial terms of the transaction were not disclosed publicly, sources indicate that the deal values Sharethrough at an estimated range between $100 million USD and $125 million, according to The Globe and Mail.

The strategic rationale behind the merger is clear: by combining forces, Sharethrough and Equativ seek to create a more robust and competitive advertising marketplace. This move positions them to challenge the dominance of "walled gardens," which refer to the closed ecosystems of major tech giants like Google and Facebook that control significant portions of digital ad spend. The integrated platform resulting from the merger aims to provide advertisers and media owners with a viable alternative that offers greater transparency, efficiency, and reach across global markets.

For Sharethrough, the journey to this merger has been marked by strategic pivots and ambitious growth plans. Initially eyeing a public listing on the Toronto Stock Exchange in October 2021, Sharethrough aimed to raise $75 million CAD to fuel its expansion and innovation efforts. However, market conditions at the time, influenced by volatility in tech stocks and lackluster IPO performances from Canadian peers like D2L and Q4 Inc., prompted Sharethrough to postpone its public offering plans.

Despite the delay in going public, Sharethrough remained focused on enhancing its market position and operational capabilities. The decision to merge with Equativ represents a strategic pivot towards achieving scale and competitiveness in the evolving adtech landscape. By joining forces with Equativ, Sharethrough not only strengthens its market presence but also enhances its technological offerings and geographic reach, particularly in the European market where Equativ is based.

Looking ahead, the merged entity will likely prioritize integration efforts to streamline operations and leverage synergies between their respective platforms. This integration process will involve aligning technologies, consolidating market strategies, and optimizing resources to capitalize on the combined strengths of Sharethrough and Equativ. Moreover, the merged company's ability to navigate regulatory challenges and innovate in data-driven advertising solutions will be critical in sustaining growth and competitive advantage in the global advertising ecosystem.

In summary, the merger between Sharethrough and Equativ represents a significant consolidation move within the adtech industry, aimed at creating a formidable player in the global advertising marketplace. By pooling their resources, technologies, and market insights, Sharethrough and Equativ are well-positioned to offer advertisers and media owners a compelling alternative to the existing digital advertising giants. This strategic alignment not only enhances their competitive edge but also underscores their commitment to driving innovation and efficiency in digital advertising solutions worldwide.