In April, ShowHeroes Group announced its plan to acquire Singapore-based adtech company Intelligent Video Solutions (iVS) for an undisclosed value. This acquisition is part of the organisation’s plan to expand into the Asia Pacific (APAC) market, including Singapore, Malaysia, the Philippines, Indonesia, Thailand and Japan.

Prior to the acquisition, iVS served over 208 million unique users each month through its programmatic marketplace, made up of Asia’s independent publishers, advertisers, broadcasters and DooH providers. The company leverages machine learning to enable monetisation and consumer engagement through its AVOD platform, proprietary video player and smart technology.

The acquisition transformed iVS CEO Milan Reinartz to the role of ShowHeroes SVP, APAC.

“We were already market leaders in Southeast Asia (SEA). Now, we have our sights set on firming up our position, growing revenue, and moving into new markets, such as Japan,” explains Reinartz.

“ConnectedTV (CTV) is a key focus for 2023 and 2024. We’re going to be bringing programmatic advertising into the over-the-top (OTT) environment, something that’s still in its nascent stages in SEA.”

The company also aims to introduce its Better Media ethos into the Asian ecosystem, a framework that includes sustainable media, responsibility over carbon emissions, data ethics, and diversity, equity, and inclusion.

To understand more about what this acquisition means for the future of ShowHeroes in the region, e27 writes to Reinartz and ShowHeroes Group CEO and Co-Founder Ilhan Zengin.

Also Read: iVS rakes in US$3.2M led by Tin Men Capital to expand its video ad platform beyond SEA

What this M&A means

Reinartz says that he and Zengin first got in touch to discuss forming a partnership, but they quickly realised the ways that both companies “overlapped and synergised”. He explains how the acquisition is going to make a difference in how the company operates.

“The commercial benefits are very impactful. With more resources, global backing, and case studies for global advertisers, we have a far larger scope than before we were on board with ShowHeroes Group,” he says.

“We’re also merging our technology and operations. We’re consolidating features such as ad and video player formats to make an already brilliant tech stack even better along with integrating iVS’ SSAI technology into the ShowHeroes VOD and live-streaming products. With exclusive PMP deals for publishers, ShowHeroes Studios’ in-house video content production, and access to ShowHeroes’ global network of independent, premium publishers, it’s a very exciting time for us and our partners and clients.”

This acquisition will positively impact ShowHeroes’s growth strategy by increasing its efficiency while maximising the breadth and depth of its product.

“We now also have access to a global intelligence system through ShowHeroes, with all its learnings, rather than relying solely on our local expertise – in the principle of economies at scale, the cost advantages we’re seeing from this acquisition are brilliant,” Reinartz says.

Also Read: Monk’s Hill-backed iVS launches in-stream video ads marketplace; names new CTO, CRO

“Furthermore, evolving from a successful startup company – with all the work that entails – to now being part of a larger global company and team allows us to fully focus on our customers and partners, both old and new.”

But this acquisition is not without challenges, especially in an ecosystem such as SEA where exits remain a rarity.

“The operations team and I spent a lot of our time with our eyes firmly on all details concerning the acquisition and were unavailable for other day-to-day functions. It was important for us to stay closely aligned as a team and structure our goals in an OKR framework. This allowed us to run our business relatively smoothly during this intense period. There’s a saying, ‘Slow is smooth, and smooth is fast’. That was well worth bearing in mind,” he elaborates.

He also stresses that M&A does not have to be all politics.

“It’s more important to build a foundation of trust, cultural alignment, and a shared, long-term vision. Only work with people you like. Surprisingly, internal stakeholder alignment proved to be more cumbersome than external negotiations. Make sure to pay it forward and have your ship in order in order to move swiftly,” he says.

“Being in the C-Suite during an acquisition, you’ll receive hundred-and-one bits of advice. Filter that advice, and then follow your gut. Nobody knows better than you if the timing is right or not,” he continues.

Also Read: Why Southeast Asia’s locally owned adtech and martech industry will survive the recession

Seizing opportunities in APAC

At the same opportunity, Zengin explains the key strengths that drew them to iVS–now ShowHeroes.

“What stood out to us was the most important thing an acquisition could provide: their team and leadership. We felt great about our connection since day one,” he says.

He further explains the role the Asia Pacific (APAC) market plays in the company’s growth plan.

“APAC is one of the fastest-growing regions next to LATAM in terms of both economy and ad spend, with just over US$197 billion in total digital spend in all of Asia Pacific during 2023. The APAC market has enormous potential for digital media. We’re here to take it as far as we can with the full force of our connections, expertise, and technology,” Zengin says.

“What’s also special is that the APAC region’s potential is not relegated to publishers and advertisers within those countries themselves – a lot of campaigns from around the globe include the APAC market in their scope, so the market’s potential exceeds its local population.”

In order to win this market, M&A plays an important role in ShowHeroes’s growth strategy.

“ShowHeroes Group has had very strong organic growth since our inception – we’ve been out-performing the market at a high pace – however, we’ve long recognised that the digital media space is one of consolidation, not domination. Local presence is absolutely key in digital advertising and that’s best achieved through M&A. When done correctly, it builds a local presence effectively overnight with the newly-acquired experts who are deeply connected to that market,” he says.

He also reveals that ShowHeroes might acquire another company in the near future.

“As a company, we’re very opportunistic when it comes to growth – as long as we have the means, we won’t pass up brilliant opportunities to grow our Hero family,” Zengin closes.

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Image Credit: ShowHeroes

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