Jumptap shareholders will obtain about 24.6 million shares of Millennial Media
US-based mobile advertising firm Millennial Media has signed an agreement to buy service provider Jumptap for about $225m.
As part of the deal, Millennial will integrate its database containing over 450m mobile device profiles with information from Jumptap.
Following the acquisition, Jumptap shareholders will obtain about 24.6m shares of Millennial Media, representing a 22.5% stake in the company, while it expects to strengthen its position in the market.
Millennial Media president and CEO Paul Palmieri said, "Millennial Media already runs one of the largest third-party digital media businesses, despite mobile being in its early stages."
The integration of the company is expected to offer better data, targeting, video, rich-media, cross-screen, programmatic bidding/buying and measurement applications that would drive buying experiences and analytics as well as performance.
After completion of the transaction Jumptap CEO George Bell will join the board of Millennial Media and become vice-chairman of the company.
Jumptap is a mobile advertising platform, which recently created a programmatic and mobile-first approach to reach audiences.