Outbrain has acquired Teads in a deal worth close to USD 1 billion, of which USD 725 million will be upfront cash, followed by USD 25 million deferred cash, 35 million shares of common stock of outbrain and USD 105 million of convertible preferred equity.

Outbrain is a performance advertising agency formed in 2006. Teads is a cloud-based, omnichannel platform that enables programmatic digital advertising.

According to a statement from Outbrain, the two companies will bring together a total 20,000 direct advertisers with a base of 10,000+ premium media environments.

Upon closing of the transaction, David Kostman, CEO, Outbrain, will serve as CEO of the combined company, with current Teads co-CEOs, Bertrand Quesada and Jeremy Arditi serving as co-presidents. Asaf Porat will serve as COO, leading the integration of the two companies.