Key Takeaways
- • Cohere Capital, a Boston-based private equity firm focused on middle market growth companies, closed a strategic growth investment in Sonobi, a digital media technology platform for premium publishers, according to Business Wire.
- • Sonobi reported year-over-year profit growth of over 100%, per the announcement, and plans to use the capital to expand its engineering team and technology platform.
- • Sonobi intends to use the partnership to acquire companies across data, martech, and ad tech, with its proprietary platform serving as the foundational layer for future acquisitions.
- • Sonobi's prior securityholders, including Safeguard Scientifics, exchanged their interests for cash and exited their positions in the company.
- • The deal was announced as COVID-19 reshapes ad tech investment, with Cohere citing Sonobi's growth trajectory and outlook.
Summary
Sonobi, a digital media technology platform for premium publishers, announced the closing of a strategic growth investment from Cohere Capital, according to a Business Wire release dated October 27, 2020. The company said the investment will fund continued investment in its technology platform, expansion of its engineering team, and extension of recent growth and market momentum. The announcement did not disclose the transaction value.
The company positions itself as a provider of efficiency, scale, transparency, and addressability in real-time advertising. Its JetStream platform integrates directly with more than 2,500 digital media properties, and the company states that advertisers can reach over 250 million potential consumers through it. Publishers can manage display, mobile, video, and in-app inventory through the same platform. Sonobi also describes its people-based identifier (PBID) as a cross-compatible identity solution with access to over 125 million people across premium publications, positioning it for cookie-less advertising environments.
Sonobi CEO and Co-Founder Michael Connolly said the company grew significantly in 2020 and cited its history of innovation, including the invention of header bidding. He said Sonobi believes it operates as one of the most efficient, if not the most efficient, platforms in its industry. Under the partnership, Sonobi plans to acquire complementary businesses in data, martech, and ad tech to build a more comprehensive digital marketing platform. Nik Shah, Managing Partner and Co-Founder of Cohere, said the firm's investing focus on tech-enabled businesses would add value and capabilities as the company scales.
As part of the transaction, Sonobi's prior securityholders, including Safeguard Scientifics, exchanged their interests for cash and exited. Sonobi thanked Safeguard for its historical support. Cohere, described as a Boston-based middle market private equity firm that primarily targets recapitalizations and growth investments in technology-enabled services companies, said the investment signals Sonobi's growth trajectory as COVID-19 reshapes ad tech investment.
The company positions itself as a provider of efficiency, scale, transparency, and addressability in real-time advertising. Its JetStream platform integrates directly with more than 2,500 digital media properties, and the company states that advertisers can reach over 250 million potential consumers through it. Publishers can manage display, mobile, video, and in-app inventory through the same platform. Sonobi also describes its people-based identifier (PBID) as a cross-compatible identity solution with access to over 125 million people across premium publications, positioning it for cookie-less advertising environments.
Sonobi CEO and Co-Founder Michael Connolly said the company grew significantly in 2020 and cited its history of innovation, including the invention of header bidding. He said Sonobi believes it operates as one of the most efficient, if not the most efficient, platforms in its industry. Under the partnership, Sonobi plans to acquire complementary businesses in data, martech, and ad tech to build a more comprehensive digital marketing platform. Nik Shah, Managing Partner and Co-Founder of Cohere, said the firm's investing focus on tech-enabled businesses would add value and capabilities as the company scales.
As part of the transaction, Sonobi's prior securityholders, including Safeguard Scientifics, exchanged their interests for cash and exited. Sonobi thanked Safeguard for its historical support. Cohere, described as a Boston-based middle market private equity firm that primarily targets recapitalizations and growth investments in technology-enabled services companies, said the investment signals Sonobi's growth trajectory as COVID-19 reshapes ad tech investment.
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