[ibimage==33936==Original==none==self==ibimage_align-center]
Santa Monica Internet advertising company Social Reality announced that it has secured $25 million in financing and acquired digital ad firm Steel Media.
The funding round consisted of two investments: a $20 million credit facility from Chicago asset management firm Victory Park Capital, and $5 million provided by Siskey Capital and other investors. The Santa Monica company used a fraction of the credit facility to complete the acquisition.
Terms of the deal have not been disclosed, but the acquisition will endow Social Reality with a new President and Chief Revenue Officer: Steel Media’s Richard Steel and Chad Holsinger, respectively. Christopher Miglino, CEO and co-founder of Social Reality, will continue at the helm.
"This strategic acquisition of Steel Media is an excellent fit for Social Reality, creating a powerful force in the digital advertising space,” said Miglino in a statement. “We welcome the Steel Media team to Social Reality, and we look forward to executing on our combined strategic vision. We appreciate the tremendous support from Victory Park Capital as our new strategic financing partner, as well as that of our new and long-term financial partners, and we look forward to their contributions as we continue to grow our business.”
[ibimage==33937==Original==none==self==ibimage_align-center]
Social Reality specializes in developing software for automated multi-platform digital advertising, including social media features and real-time bidding markets. Before the most recent round, the company had raised $1.73 million in financing since its 2009 founding. New York-founded Steel Media serves a separate segment of the marketplace, offering audience targeting and related services for ads delivered through desktop, mobile, and email to brands and ad agencies. The privately held company, which has served 30 of the Fortune 100 companies, is expected to earn $10 million in revenue for 2014.
“Expanding Steel Media's product offerings for our customers will drive growth within the combined business," said Steel in a statement. "We're ready to make our mark...Our combined company now has strengths that span the complete digital spectrum."
While no future plans have been made explicit, Miglino added, “With the enhanced revenues and positive operating cash flow from this acquisition, combined with increased leverage and ability to reach into new markets, Social Reality is well-positioned for long-term growth."
