French adtech firm Criteo in new bid to sell itself-sources

Criteo SA (Pre-Reincorporation)

07/02/2023 16:07

By Milana Vinn
       NEW YORK, Feb 7 (Reuters) - French advertising
technology provider Criteo SA  CRTO.O  is making a new attempt
to sell itself after discussions with potential acquirers in
previous years proved unsuccessful, according to people familiar
with the matter.
    The Paris-based company, which is listed in New York and has
a market value of close to $2 billion, kicked off a sale process
last week that could attract other companies and private equity
firms, one of the sources said. Investment bank Evercore Inc
 EVR.N  is advising Criteo on the process, the sources added.
    Bloomberg News reported in 2021 that Criteo was fielding
takeover interest. It was not immediately clear what prompted
the new deal talks. The company has been seeking to reassure
shareholders it can overcome challenges to its business of
tracking consumer data as iPhone maker Apple Inc  AAPL.O  and
Android developer Google  GOOGL.O  tighten privacy standards on
their devices. 
    The sources, who cautioned that no deal is certain,
requested anonymity as these discussions are confidential. 
    Criteo declined to comment, while an Evercore spokesperson
did not immediately respond to a request for comment.
    The sale process for Criteo will likely pique the interest
of buyout firms that have shown strong interest in audience
measurement and analytics companies. In October, Elliott
Investment Management's private equity arm and Brookfield
Business Partners LP  BBU.N  acquired Nielsen Holdings Plc for
$16 billion. 
    Criteo collects data through partnerships with companies, ad
agencies and brands, and earns money by charging advertisers
when consumers click on personalized ads. 
    It has been utilizing so-called first-party media
technology, which relies on data that consumers provide to
websites either through direct input or through tracking
"cookies," to overcome the introduction of privacy settings on
devices such as the iPhone.  
    These tactics face new challenges as Google prepares to
phase out cookies on its popular web browser Chrome as early as
next year. In response, Criteo has been investing in its
fast-growing retail media business, which involves partnering
directly with the websites of retailers. 
    Criteo has reported adjusted earnings before interest,
taxes, depreciation and amortization of $163 million for the
first nine months of 2022, down 23% from a year earlier. It is
scheduled to report fourth-quarter earnings on Wednesday. 
 (Reporting by Milana Vinn in New York; editing by Jonathan
Oatis)
 ((milana.vinn@thomsonreuters.com))