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Goldman Sachs-backed Madhive to buy Frequence

Jun 11, 2024
Illustration of a bullhorn resting on top of a stack of one hundred dollar bills.

Illustration: Gabriella Turrisi/Axios

Madhive, the Goldman Sachs-backed ad tech firm valued at $1 billion, has agreed to acquire Frequence to further support local media advertising.

Why it matters: The deal grows Madhive's offerings beyond connected TV and digital video and into more media channels.

Catch up quick: Madhive helps local TV companies like Tegna, Fox and Scripps sell CTV ads. Earlier this year, it launched a local marketplace for political ads. In 2023, Madhive raised $300 million from Goldman Sachs.

  • The acquisition aligns with what former CRO Jon Kaplan told Axios in January, when he said growth could come from expanding to more local sales organizations like newspapers, radio and out-of-home

Zoom in: Frequence's software focuses on automating ad sales and management across channels including CTV, websites, streaming audio, social media and out-of-home.

  • Based in Mountain View, California, and founded in 2010, Frequence did not raise outside capital.
  • Madhive CEO Spencer Potts tells Axios that the initial priority will be integrating Frequence's tech into its existing offering, including its planning capabilities that automate campaign workflows across proposals, activation and analytics.
  • The acquisition will vastly expand Madhive's workforce. All 300 Frequence employees will join Madhive's team of 200. Frequence CEO Tom Cheli will serve as chief strategy officer and report to Madhive CEO Spencer Potts.
  • Terms were not disclosed. Madhive aims to close the deal within 45 days.

Context: Moelis & Co served as exclusive financial adviser and Wilson Sonsini Goodrich Rosati provided legal counsel to Frequence.

  • Latham and Watkins served as legal counsel to Madhive.

Editor's note: The story was updated to clarify that Kaplan has left the company and is the former (not current) CRO.

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