Shares of small-cap adtech IAS soar 20% on news of company's acquisition at premium
Shares of small-cap company Integral Ad Science (IAS), which provides AI-based measurement and verification services for digital advertising, soared 20.5% yesterday, September 24, after the company announced it would be acquired at a premium by Canadian investment firm Novacap.
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IAS stock rose 20.5% to $10.20 per share yesterday, its highest level in six months, as investors reacted to the takeover news. Under the terms of the deal, Novacap will acquire the company at $10.30 per share, representing a 22% premium to the closing price on Tuesday, September 23. Novacap manages more than $10 billion in assets.
The transaction has already been approved by IAS’s largest shareholder, Vista Equity Partners, which holds about 40% of the company, according to a Bloomberg article from October last year. Approval from other shareholders is not required. If regulators give the green light, the acquisition is expected to close by the end of 2025, after which IAS will be delisted.
About Integral Ad Science
"We have long admired IAS as an innovator and leader in its industry, with a stellar leadership team, and robust AI-first platform for Fortune 500 brands and publishers," said Novacap partner Samuel Nasso.
IAS forecasts that global digital advertising spending will reach nearly $870 billion by 2027. Yet, according to the company, up to a third of ads are never seen by consumers, while the growing use of generative AI in digital media raises concerns about misinformation. IAS says its tools are designed to tackle these challenges, offering services that include contextual targeting, ad fraud prevention, bot protection, and visibility measurement.
In the second quarter, IAS reported revenue of $149.2 million, up 16% year over year, while net income more than doubled to $16.4 million.
The AI translation of this story was reviewed by a human editor.
