Video company Ooyala has bought UK advertising startup Videoplaza Ltd. for an undisclosed price.
Ooyala, which was purchased by Melbourne, Australia-based Telstra Corp. Ltd. in August for $270 million, is the latest example of the uptick in M&A within the video advertising market. Other notable transactions that were recently announced include Opera Software ASA's acquisition of AdColony for $350 million in June, and the $405 million deal between AOL Inc. (NYSE: AOL) and Adap.tv in August.
London-based Videoplaza is Ooyala’s first acquisition, and it likely won't be the last. “For Ooyala, this acquisition is the first step in a multi-step strategy aimed at establishing global leadership in personalized cloud TV and video,” says the company.
Since being founded in 2008, Videoplaza had raised $12 million in venture capital funding. Creandum, Innovacom, Northzone and Qualcomm Ventures are among the company's backers.
Ooyala is expected to integrate Videoplaza into its services, allowing the buyer to bolster in-house advertising services and grow across Europe and Asia-Pacific, as well as its U.S. offices, which include New York, Los Angeles and Mountain View, California.
Videoplaza CEO Sorosh Tavakoli is slated to run Ooyala’s advertising business once the deal closes.