2 February 2018 – acquisition, director changes and trading update
The tender offer to acquire the shares of common stock of YuMe, Inc. pursuant to the terms of the acquisition agreement dated 4 September 2017 has successfully closed. RhythmOne will complete the acquisition of YuMe later today through a merger. A number of changes to the company’s Board have been made as a result of this. Eric Singer and John Mutch will be appointed as Non-Executive Directors of RhythmOne, effective as of the expected completion of the Merger. The former will also become Chairman, a role which Raj Chellaraj will vacate although he will maintain his position as a Non-Executive Director. Suranga Chandratillake and Andrea Cunningham will resign as Non-Executive Directors.
The company has also confirmed that trading in the last three months of 2017, representing the third quarter of the company’s financial year, was in line with expectations. Performance was led by on-platform programmatic revenue growth, which saw an increase of approximately 13% year-on-year. We rate the shares as a BUY.