Ad platform Verve Group is acquiring Nexstar Media Group’s digital video ad technology platform, previously known as LKQD. According to the deal release, LKQD “reaches over 200 million unique monthly users in the US across desktop, mobile, in-app, and connected TV devices.” In the last year, Verve Group has acquired Verve, PubNative and Platform161 and its latest buy is designed to boost the company’s video capabilities.
Nexstar’s video ad platform is supply-focused, connecting publishers with advertisers and DSPs globally, including The Trade Desk, Adobe and Amobee. Publisher clients include Samsung, Newsy and Viacom.
With the acquisition, Verve Group gains immediate access to increasingly valuable CTV and OTT inventory. Per the release, “nearly 80% of Nexstar’s video platform business in 2020” came from CTV and OTT ad spend. Data from eMarketer finds that CTV ad spending in the US will more than double to over $18 billion by 2024. With this deal, Verve Group is seeking to strengthen its offering in CTV and OTT, and win a greater piece of that expanding pie.
The deal will give Verve Group access to these in-demand publishers for their ad partners, while giving their publisher clients new tools from Nexstar’s technology that they can leverage to drive revenue and manage it.
According to Sameer Sondhi, CRO at Verve Group: “We’re excited to provide our large global publisher base with some of the key features and products that come with this video advertising technology, including ad serving, mediation, programmatic auctions, detailed reporting, and a unique combination of internal and external quality measurement and enforcement tools.”
In December 2017, Nexstar acquired LKQD for $90 million in cash. The goal, at the time, was to boost the video capabilities of its subsidiary Nexstar Digital. It appears, however, that the deal ultimately did not pan out as Nexstar has sold the platform to Verve Group without commenting on the transaction or releasing the purchase price. From these details, it is likely safe to assume that the cost was under $90 million.
