MCAP-AdTheorent Business Combination Approved, Is Expected to Start Trading Under AdTheorent ‘ADTH’, and at 23% Discount to Peers



KEY POINTS
  • MCAP Acquisition Corp. and AdTheorent business combination was approved on December 22, which will create a roughly $1.0 billion market cap company. AdTheorent is a programmatic digital advertising leader using advanced machine learning technology and privacy-forward solutions.
  • The MCAP Acquisition Corp announced that shareholders have approved its combination with AdTheorent on December 21, 2021, see 8-K filing. The business combination is expected to close on December 22, 2021 and start trading as AdTheorent (Nasdaq: ADTH) on December 23, 2021. The business combination proposal vote count was 27,595,393 for, 669,757 against, with 70,829 abstentions.
  • AdTheorent’s ability to drive business performance for advertisers, measured by advertiser-provided business goals, makes it unique among its peer set. The company’s proprietary suite of tools, methodologies, and vertical solutions maximizes campaign performance and ROI for advertisers, while operating in a privacy-first manner, which has quickly escalated as an essential element for brand marketers worldwide.
  • Operating at massive scale, AdTheorent optimizes ad targeting by evaluating and providing predictive scores for more than 87 billion impressions daily, bidding on less than 0.01% of impressions scored. Decisioning at this scale enables AdTheorent to make precise ad placement decisions for each of its world-class advertiser customers. The company also leverages advanced machine learning and data science to drive platform efficiencies by optimizing against ad impressions which represent a greater risk of IVT/fraud, poor viewability and brand safety, or impressions that may not be measurable by third-party measurement providers.
  • The CTV market is a major growth driver for AdTheorent with nearly 300% growth YoY in 3Q21, and 240% growth expected in 2022. With 10 years of operating history, AdTheorent has a proven technology and business model that many SPACs lack.
  • For a comp group, we have used a group of similar growth, similar margin ad software companies. These comparables have an average forward EV/EBITDA of 31.3x, while ADTH is priced at 24.1x, a 23% discount.
  • Read all our reports on AdTheorent on our website.
COMPANY OVERVIEW

AdTheorent is a privacy-forward, machine-learning powered programmatic advertising company. Put simply, the company uses machine learning and data science to target digital ads based on non-individualized predictive scores. Sophisticated data-driven advertisers who know digital and expect their digital campaigns to drive tangible results are its biggest clients.

AdTheorent is improving the digital world for advertisers and consumers. By way of illustration, consider the following: when a consumer accesses content on a device—a mobile device, tablet, or laptop—a content page will render on that device, and that screen will likely contain an opportunity to show an ad, which is called a digital impression.

Advertisers want to know which of these impressions or opportunities to show/serve ads are most likely to yield engagement, conversions, or other advertiser-specified actions by their customers such as credit card signups, online sales, a hotel or airline bookings, whatever action is behind the given ad campaign, the advertiser is trying to drive those actions. They want to buy the media that's going to do just that.

Behind the scenes, there's a marketplace to buy and sell those ad opportunities. It's an auction system that takes place in microseconds. AdTheorent occupies the demand-side platform silo in this ecosystem, enabling advertisers to purchase digital media and digital ad impressions in real time and one at a time.

The key to AdTheorent’s success is that it has transformed how that is done. AdTheorent uses machine learning and data science as its core method of ad targeting and campaign optimization. This contrasts with cookie-based or other ID-based or user profile-based targeting, which focuses more on individual identities and retargeting users and profiles across the Internet.

MCAP Acquisition Corp. and AdTheorent business combination was approved on December 22, which will create a roughly $1.0 billion market cap company. AdTheorent is a programmatic digital advertising leader using advanced machine learning technology and privacy-forward solutions.
The MCAP Acquisition Corp announced that shareholders have approved its combination with AdTheorent on December 21, 2021, see 8-K filing. The business combination is expected to close on December 22, 2021 and start trading as AdTheorent (Nasdaq: ADTH) on December 23, 2021. The business combination proposal vote count was 27,595,393 for, 669,757 against, with 70,829 abstentions.

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