Natural language processing company Expert System will sell its subsidiary ADmantX to digital ad verification firm Integral Ad Science (IAS) for an agreed value of €16 million.
The announcement was made by Expert Systems on November 20th and revealed the transaction will take the form of an all-cash deal.
With it, IAS will purchase 100% of ADmantX, including the company’s stake of 60.8% whose value is now equal to over €7 million.
“ADmantX has grown from a start-up into a successful business and is able to attract the attention of a global leader in the world of online advertising,” said Expert System CEO Stefano Spaggiari, commenting on the news.
“This deal is another clear confirmation of the value of Natural Language Understanding and the enormous potential of AI as a strategic asset for growth and development,” he explained.
According to the company, selling ADmantX will allow Expert System to expand and develop further as a global vendor of AI technologies.
IAS, on the other hand, will merge ADmantX software capabilities with its own platforms and will work jointly with Expert System to further the growth of the Cogito features in the global IAS suite of ad verification products.
“ADmantX shares our bold and disruptive vision to incorporate data and science as the foundation of building innovative and trustworthy solutions that both advertisers and publishers can trust,” said Lisa Utzschneider, CEO of IAS.
“Adding this sophisticated contextual technology to our global product suite unlocks unprecedented contextual classification at scale, enabling precise ad targeting for marketers.”
Integral Ad Science was founded in 2009, is headquartered in New York, and is currently operating in 17 offices across 13 countries.
Following the conclusion of the transaction, the company, which is part of the Vista Equity Partners portfolio of software companies, will absorb the ADmantX brand under its own.