AdSupply has offered $35M -- about $1.50 a share, a ten-bagger premium over the current price of $0.144 -- in a letter to Adaptive's board.
The company will form a committee to review the deal and Adaptive CEO John Strong says they'll do their fiduciary duty to check all options.
AdSupply chief Justin Bunnell said companies in the ad-tech space (particularly sometime candidates Rubicon Project (NYSE:RUBI), Rocket Fuel (NASDAQ:FUEL) and Criteo (NASDAQ:CRTO)) should be ready for what might be a wave of acquisitions with stock prices lower than before and "as companies prepare for the next round of competition."
The consolidation wave isn't expected to let up in 2015, given a widespread belief there are far too many independent players competing in a market where bigger Internet names such as Google, Facebook, Yahoo, AOL, and Twitter also play prominent roles.
"I don’t know what the right number [of companies] is, but it’s probably less than 10," says Luma Partners' Terence Kawaja, citing Google/Facebook's share gains. Coady's Colin Knudsen argues the services of ad tech firms focused on one particular offering are typically more expensive, and that "only the best will be sustainable as standalone entities over time."