Triton is being acquired by Scripps. The purchase price is $150 million and the transaction will be financed with cash on hand. Triton’s 2018 revenue is projected to be approximately $40 million, with EBITDA projected in the mid-teen millions. Triton is one of the global leaders in digital audio technology and measurement service. Scripps says it will help to advance its strategies for near- and long-term value creation.
Triton serves the digital audio marketplace through a software-as-a-service (SaaS) business-to-business revenue model. Triton powers or measures streaming music and podcasting for many of the biggest names in audio, including Pandora, Spotify, NPR, iHeart, Entercom, Cumulus, Prisa (Spain), Mediacorp (Singapore) and Karnaval (Turkey).
Triton’s infrastructure and ad-serving solutions deliver live and on-demand audio streams and insert advertisements into those streams. Triton’s data and measurement service are recognized as the currency by which publishers sell digital audio advertising.
According to Scripps, Triton’s 2019 revenue is projected to grow in the low to mid-teens percent range over 2018. The revenue multiple for the transaction is about 3.7x; the EBITDA multiple is about 9x.
“Triton positions Scripps well to expand its role in the fast-growing global digital audio marketplace. Triton’s efficient business model, multiple growing revenue streams, competitive advantages and expanding international footprint made this an attractive opportunity. The acquisition of additional television stations remains our No. 1 M&A priority, with the goal of enhancing our national scale and in-market depth for our Local Media portfolio. On the National Media side, acquiring Triton complements our strategy of owning growth businesses that capitalize on the evolving habits of media consumers and furthers our commitment to margin expansion.”Adam Symson, Scripps President and CEO
The global digital audio marketplace is projected to grow to $14.8 billion in 2022, according to Statista, as consumers increasingly turn toward streaming audio services. The industry growth comes as a result of the ubiquity of smartphones, the popularity of connected cars and the explosive growth of smart speakers in homes.
Triton has two lines of business in audio
- Measurement: Triton’s measurement technology platform is the standard in the digital audio marketplace. Triton’s metrics are the currency through which agencies and brands buy digital audio advertising from streaming and on-demand audio companies.
- Infrastructure: Triton provides its clients with hosting and advertising infrastructure to deliver digital audio streams with data-powered dynamic ad insertion to listeners worldwide.
“Since its inception, Triton has partnered with the largest and most successful audio companies across the nation and around the world to support the growth of the streaming audio ecosystem. Joining Scripps, a company known for its focus on the future ofNeal Schore, Triton co-founder and CEO
media,will support our continued innovation and will strengthen the products and services we offer to our clients here in the U.S. and as we continue our expansion across the globe.”