What the Cadent Acquisition Means for the Future of Converged TV
As consumers grow more comfortable with the idea of combining live TV, streaming services, and on-demand content into one platform, private equity firms are betting that converged TV startups are about to become a revenue goldmine. In the latest example of what’s become a trend in the space, Novacap, one of the most well-known private equity firms in North America, is buying Cadent — a specialist in platform-based converged TV advertising solutions.
Financial terms of the deal have not been officially disclosed, but the acquisition comes at an interesting time for Cadent, with audience viewing habits rapidly shifting and the pivot towards digital streaming platforms and devices already well underway. As audience consumption becomes more fragmented, Cadent’s technology solutions could become critical for advertisers looking to maintain and amplify their reach and audience targeting capabilities across multiple TV devices or services.
Cadent has its roots in New York City, having been around long enough to see how TV brand advertising has evolved over more than a decade. The company provides data-driven solutions for buying and selling TV advertising, with scaled inventory integration, consistent audience definition across devices, and unified planning and tracking across multiple inventory types.
“We are at the beginning of a fundamental shift in TV advertising, and with strategic investments and acquisitions we believe Cadent will continue to propel forward as an innovator in the converged marketplace,” explains Novacap Principal Samuel Nasso.
Converged TV is the integration of traditional television with digital technologies, like the internet and mobile devices. It allows viewers to watch television content on a variety of platforms, including their TVs, computers, and smartphones. Converged TV has become important to advertisers and brands in recent years because it allows them to reach a wider audience with more targeted ads.
Unlike omnichannel advertising, which takes a more holistic approach by integrating all of a brand’s marketing channels, including online and offline, converged TV is singularly about reaching people where they are when they’re watching television content.
Since it was founded in 2005, Cadent has grown to become one of the largest independent platforms for unified audience targeting across connected television (CTV), traditional TV, and digital advertising. The company’s roster of customers includes global agency holding companies, media buying agencies, global publishers, content distributors, and more than 70 of the Ad Age Top 100 advertisers.
The partnership between Novacap and Cadent marks the fourth recent investment under Novacap’s TMT VI Fund.
“Cadent, as a pioneer in converged TV advertising, embodies the kind of innovative, growth-focused company we aim to partner with,” said Pascal Tremblay, managing partner in TMT and CEO at Novacap. “Our extensive capabilities in accelerating high-growth technology companies make us an ideal partner to support Cadent.”
Cadent’s Aperture Platform has nearly 300 partner connections in its ecosystem, and the company holds numerous technology patents for identity management, audience targeting, and advertising monetization.
“The completion of this transaction marks the beginning of an exciting new chapter for Cadent,” said Nick Troiano, CEO at Cadent, “Our customer focus and dedication remains unchanged, and we expect that our partnership with Novacap will only accelerate our vision of the future of advertising – one that is audience-first, data-infused, and activated seamlessly across all converged media.”
