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AdTheorent acquisition proposal withdrawn; Cadent merger continues

Published 16/05/2024, 15:22
ADTH
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NEW YORK - AdTheorent Holding Company, Inc. (NASDAQ:ADTH), a machine learning company focused on programmatic advertising, has announced the withdrawal of a non-binding acquisition proposal by an unnamed third party. The bid, which offered $3.35 per share, has been retracted, with the third party indicating no plans to submit a new proposal.

This development follows the go-shop period after AdTheorent's announcement on April 30, 2024, of a definitive merger agreement with Cadent, LLC, a provider of converged TV advertising solutions. Cadent, backed by private equity firm Novacap, is set to acquire all outstanding shares of AdTheorent common stock for $3.21 per share in cash, totaling approximately $324 million.

The transaction with Cadent remains on track, with the Hart-Scott-Rodino Antitrust Improvements Act waiting period expiring on May 6, 2024, satisfying one of the merger's closing conditions. AdTheorent plans to promptly mail a definitive proxy statement to its stockholders to seek approval for the Cadent transaction at a special meeting.

AdTheorent, headquartered in New York, is recognized for its machine learning-powered media buying platform and privacy-forward advertising solutions.

This news is based on a press release statement from AdTheorent.

InvestingPro Insights

In light of AdTheorent's recent developments, including the withdrawal of an acquisition proposal and the ongoing merger agreement with Cadent, LLC, investors might find the following insights from InvestingPro particularly relevant:

AdTheorent has shown a remarkable price performance with a 183.47% price total return over the last six months, indicating strong investor confidence which could be tied to the company's strategic moves and merger announcements. This momentum is further underscored by a 20.77% return over the last three months and a 146.76% return over the last year. Despite not being profitable over the last twelve months, AdTheorent's net income is expected to grow this year, as per InvestingPro Tips, which could be a signal of a turnaround and potential future profitability.

The company's market capitalization stands at 315.42M USD, and while its P/E ratio is negative at -61.29, reflecting its current lack of profitability, analysts predict the company will be profitable this year, which could lead to a more favorable P/E ratio in the future. Additionally, AdTheorent's gross profit margin for the last twelve months as of Q1 2024 is 47.19%, demonstrating its ability to retain a significant portion of revenue as gross profit.

For those interested in deeper analysis, there are 9 additional InvestingPro Tips available for AdTheorent, which can be accessed through the following link: https://www.investing.com/pro/ADTH. Investors seeking to take advantage of these insights can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

These metrics and tips should be considered in the context of the proposed merger with Cadent, as they may influence both the short-term trading and the long-term investment outlook for AdTheorent.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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