YP, a portfolio company of Cerberus Capital Management, said Monday that it has acquired Sense Networks. No financial terms were disclosed. Union Square Advisors and Kilpatrick Townsend & Stockton advised YP on the transaction. Based in New York City, Sense Networks is a provider of mobile advertising solutions. Its backers included Intel Capital and Javelin Venture Partners.
ATLANTA–(BUSINESS WIRE)–YP, North America’s largest local search, media and advertising company connecting consumers with local businesses, today announced that it has acquired the business, assets and employees of Sense Networks, Inc. (“Sense”), a pioneer in delivering mobile advertising through unique location and behavioral data. Sense’s mobile targeting platform and proprietary user information will enable YP to deliver differentiated targeted mobile display capabilities to advertisers and unlock additional opportunity in the rapidly growing mobile advertising market. Terms of the transaction were not disclosed.
YP is currently the second-largest mobile advertising company in the U.S., according to IDC, based on its strength in mobile search advertising. With the integration of Sense’s technology, YP will now add a best-in-class platform to develop and capitalize on industry-leading audience and location-targeted display products. By expanding on YP’s mobile search capabilities with mobile display, this combination will not only improve the mobile experience for consumers and local advertisers, but will also create highly effective products for national advertisers seeking local results at scale.
“We are excited to acquire Sense’s cutting-edge targeting technology and its talented team to deliver relevant local advertising to consumers who increasingly connect on mobile,” said David Krantz, CEO of YP. “YP is the largest digital local advertising network in the U.S., generating more than $1 billion in digital ad revenue each year, with more than a third of that from mobile. With Sense’s technology, YP will be better positioned to improve and grow our mobile advertising leadership through enhanced targeting to consumers. We expect to continue to make technology acquisitions and plan to aggressively maintain and build on our mobile advertising leadership.”
Sense brings leading targeting technologies, extensive consumer information of behavioral and lifestyle attributes, and a world-class team to YP. YP has already engaged Sense through a commercial partnership, and with enhanced targeting capabilities, has helped national advertisers across a number of verticals achieve superior local results.
“This acquisition cements YP’s leadership position as a premier digital partner, with the right offerings and a dedicated team to support national advertisers and agencies,” said David Lebow, Senior Vice President & General Manager of YP’s National Markets Group. “The addition of Sense Networks’ technology to YP’s product portfolio will deliver unique solutions for national brands looking to generate local results.”
YP plans to continue to invest in the Sense technology and to add to the Sense team’s talent and expertise with additional members experienced in mobile search and display advertising.
This is YP’s first acquisition as a standalone company. Majority-owned and backed by leading private equity firm Cerberus Capital Management, L.P., YP plans to continue to enhance its capabilities in digital advertising technology and local search consumer experiences by actively evaluating opportunities to partner and invest in industry-leading technology.
Sense Networks grew to be a leader in applying mobile location and behavioral targeting data to connect brands with relevant mobile users, through mobile ads. The Sense technology uses a sophisticated location data processing platform, to deliver mobile audiences at scale. Sense’s retargeting solution for retailers can identify and reach shoppers and prospects of the top retailers with relevant mobile ads when they are near the retailer, such as at home or work. The company was founded by computer scientists from MIT and Columbia and was backed by Intel Capital, Javelin Venture Partners and investors from the hedge fund community.
Union Square Advisors LLC and Kilpatrick Townsend & Stockton LLP served as advisors to YP.
YP is North America’s largest local search, media and advertising company. It is a leader in mobile advertising, generating more than $350 million in annual advertising revenue attributable to mobile. YP’s flagship consumer brands include the YP℠ app, rated among the top 20 apps in the free Travel category in iTunes and among the top 10 apps in the free Travel & Local category in Google Play; YP.com, one of the 35 most visited web domains in the U.S.; and The Real Yellow Pages® directory.
The YP℠ Local Ad Network, along with other YP distribution channels, provides advertisers with an opportunity to reach nearly 95% of monthly Internet users across more than 300 affiliated online and mobile publishers. Through customized campaigns designed by expert advisors, YP provides local businesses with one of the most cost effective sources for consumer leads.
YP products and services are backed by thousands of media consultants and customer service professionals in local markets across the US with relationships spanning over 600,000 businesses. An affiliate of Cerberus Capital Management, L.P., one of the world’s leading private investment firms, acquired a controlling interest in YP in 2012. For more information on YP, visit us at http://corporate.yp.com. Follow us on Facebook: http://www.facebook.com/YP and on Twitter:@YP.