Integral Ad Science Soars 20% on $1.9B Private Equity Buyout
Novacap's all-cash deal at a 22% premium aims to accelerate the ad-tech firm's AI-driven growth.
Shares of Integral Ad Science (NASDAQ: IAS) surged nearly 20% after the digital ad verification company announced it had agreed to be taken private by Canadian private equity firm Novacap in a $1.9 billion all-cash deal. The transaction values IAS at $10.30 per share, representing a significant 22% premium over its closing price the day before the announcement.
The acquisition marks a pivotal new chapter for IAS, which specializes in providing services like ad verification, fraud detection, and optimization. According to the , the deal was unanimously approved by the IAS Board of Directors and is expected to close by the end of the year, at which point IAS will be delisted from the public market.
For Novacap, a firm with a growing portfolio in the technology sector, the acquisition is a strategic move to deepen its presence in digital advertising. The private equity firm stated its intention to help IAS accelerate its investment in its AI-first technology platform and support its long-term strategic goals away from the pressures of the public market. The deal also provides an exit for current shareholder Vista Equity Partners.
Wall Street analysts reacted quickly to the news, with several firms adjusting their ratings on the stock. Raymond James downgraded the stock from "Outperform" to "Market Perform," noting that the acquisition but sees a low probability of a competing bid emerging. Similarly, Stifel , citing the valuation offered in the buyout.
This deal highlights a broader trend of private equity firms targeting technology companies with strong growth potential, particularly those in the artificial intelligence space. As a private entity, IAS will have greater flexibility to innovate and expand its market-leading position in the competitive ad-tech landscape, where it competes with players like DoubleVerify. The move is expected to allow the company to focus on product development and long-term strategy without the quarterly scrutiny of public investors.