- New York-based adtech agency IgnitionOne laid off employees on Wednesday and faces allegations of unpaid payments.
- IgnitionOne just lately spun off its demand-side platform to martech agency Zeta International to deal with its information and tech enterprise.
- Progress Companions, an funding agency IgnitionOne employed to advise it on the deal, alleges that IgnitionOne owes the agency greater than $590,000 in damages.
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IgnitionOne, which builds and sells programmatic promoting know-how, laid off a handful of staff on Wednesday, sources near the corporate stated.
The cuts, estimated to quantity fewer than 10, got here two months after martech agency Zeta International acquired IgnitionOne’s demand-side platform that coordinates entrepreneurs’ programmatic advert buys. A few of IgnitionOne’s accounts from small to mid-size manufacturers and fewer than 15 individuals from IgnitionOne joined Zeta International as a part of the deal, a Zeta International spokesperson stated.
IgnitionOne confirmed that the layoffs affected fewer than 10 staff.
IgnitionOne faces a breach of contract criticism from its former funding agency
IgnitionOne additionally faces a civil criticism alleging breach of contract from Progress Companions, an funding agency it employed to advise it on a possible sale. A criticism filed in October in Massachusetts District Courtroom alleges that IgnitionOne owes Progress Companions greater than $590,000 in damages plus legal professional’s charges, curiosity and different prices, associated to its work that led to the take care of Zeta International in September.
It is unclear if there’s a connection between the criticism and the layoffs.
Adtech consolidation continues
Fifteen-year-old IgnitionOne is likely one of the oldest adtech corporations and works with manufacturers like Mazda and Motel 6, in accordance with its web site. The corporate offered entrepreneurs the DSP in addition to a tech and information service that claims to assist firms do issues like personalize adverts to individuals primarily based on their search historical past.
IgnitionOne was acquired by holding firm Dentsu Aegis in 2010 and spun out as a standalone firm in 2013. The corporate has raised $85.2 million and has about 250 staff, in accordance with LinkedIn.
Adtech firms battle to pivot into new companies, significantly DSP firms specializing in media shopping for.
Massive corporations like The Commerce Desk and Google proceed to make inroads with giant advertisers whereas holding firms reduce on the variety of adtech firms that they work with.
Because of this, smaller DSPs like IgnitionOne, OwnerIQ and Dataxu have grow to be acquisition targets. Roku just lately acquired Dataxu for $150 million, and OwnerIQ was acquired by tech and information companies firm Inmar.