Irvine’s Specific Media Inc., which runs an online advertising network, said Tuesday it acquired New York-based Broadband Enterprises Inc., a provider of streaming video advertising.
Specific Media didn’t disclose any terms of the deal.
A Wall Street Journal report pegged the deal price at about $55 million in cash and stock, citing a person familiar with the transaction.
Another trade publication, Media Memo, said Broadband Enterprises could have netted $65 million to $85 million.
Broadband Enterprises’ technology helps websites track and produce video advertising.
“Video is an exciting market, but advertisers have been unable to capitalize on its potential because it currently lacks data, targeting and analytics,” Specific Media Chief Executive and cofounder Tim Vanderhook said. “We chose Broadband Enterprises because the company has a complete solution for brand advertisers, proven technology and a strong leadership team.”
Broadband Enterprises “works with a majority of Fortune 100 brands” across some 2,400 websites, the company said.
“This acquisition expands Specific Media’s already large customer base, many of which currently use solutions from both companies,” Specific Media said.
Broadband Enterprises is set to be run as a subsidiary of Specific Media and keep its brand name and office in New York.
Matt Wasserlauf, founder and chief executive of Broadband Enterprises, will stay on as Specific Media’s executive vice president of video platform and services. He is set to head the expansion of its video offering into Europe, the company said.
Brothers Tim, Russell and Chris Vanderhook started Specific Media in the family’s Yorba Linda home.
Chris Vanderhook is chief operating officer. Russell Vanderhook is senior vice president.
In 2007, the brothers chose to take a $100 million funding over a public offering.
The deal, financed primarily by private equity funding, was the biggest local one of its type that year.
The company said at the time it would use the money to go after companies in the U.S. and Europe and to tap new types of online ads, including text-based advertising (similar to Google Inc.’s sponsored links) and streaming video.
In 2008, Specific Media bought London’s Adviva Media Ltd. for undisclosed terms.
Specific Media, which doesn’t disclose revenue, makes money by buying up banner ad spots on websites and reselling the space to companies looking to advertise to very specific groups of consumers.
The advertisers pay a 20% to 30% premium for the spots because of Specific Media’s “behavioral targeting” technology.
The company can go after people based on demographics, location and Web sites visited, among other criteria.
The company has some 150 workers here.
