Microsoft Buying YaData

Microsoft has agreed to acquire YaData Ltd., an Israeli provider of online advertising solutions. No financial terms were disclosed, although press reports peg the price at between $20 million and $30 million. YaData was founded in July 2006, and has raised around $4 million in VC funding from Giza Ventures and Ofer Hi-Tech.

PRESS RELEASE

Microsoft today announced an agreement to acquire
YaData Ltd., a provider of advanced tools for the discovery of unique customer segments.

YaData's technology will enable Microsoft to provide its advertisers with richer targeting capabilities so they can connect with their audience in more efficient and engaging ways, at the same time providing its customers more relevant and focused ads. The YaData team will join Microsoft's Israel R&D center in Herzliya and YaData's solutions will be deployed through Microsoft's Advertiser and Publisher Solutions group.

“The purchase of YaData brings the Israeli R&D center into the field of online advertising, which is undoubtedly one of Microsoft's most strategic fields,” said Moshe Lichtman, President of the Microsoft Israel R&D Center. “This is a great example of how Israeli technology has considerable value that is contributing to our most important areas of development. In recent months, I have become familiar with YaData's top quality personnel, and I am convinced that their contribution to the Israeli R&D center and to Microsoft globally will be significant.”

YaData, founded in July 2006, is headquartered in Tel Aviv, Israel and has received funding from Israeli venture capital funds Giza and Ofer Hi-Tech. The company's solutions provide marketing managers with the tools necessary to automatically identify and target specific customer groups.

YaData's technology will be integrated into Microsoft's Advertiser and Publisher Solutions group and will add advanced behavioral targeting tools and capabilities to Microsoft's online advertising platform. The addition of YaData's technology will help Microsoft's efforts to improve advertisers' ROI and to provide more focused and relevant advertising, tailored to specific client needs. In addition, the integration of YaData's solutions with Microsoft will help improve Internet content creators' ability to monetize their inventory.

“YaData fully believes in the potential of behavioral targeting to enhance the value of online advertising for publishers, advertisers and users,” said Amir Peleg, chief executive officer of YaData. “Microsoft has the resources to unlock the potential in YaData's technology and create a truly innovative online advertising solution. We're excited to see what the future holds.”

Microsoft is committed to providing best-in-class audience segmentation and targeting without using personally identifiable information. As YaData's technology is incorporated into Microsoft's advertising platform, Microsoft will continue to adhere to its high standards for the protection of consumer privacy.

The acquisition is subject to certain closing conditions, including receipt of required regulatory approvals. It is expected to close after the required regulatory approvals are received.